Mnchen (Reuters) – The truck and rail supplier Knorr-Bremse has to buy its 20 percent stake in its European business with commercial vehicle brakes from its competitor Bosch.
That was decided by an arbitration tribunal at the end of last year, said Knorr CFO Frank Weber on Thursday in Munich. Now the purchase price for the stake in Knorr-Bremse Systeme für Nutzfahrzeuge (SfN) and a joint company in Japan had to be negotiated. Knorr-Bremse has already set aside 379 million euros in its balance sheet. This corresponds roughly to the amount for which the Stuttgart auto supplier is allowed to sell the share package to Knorr-Bremse under the contract.
The Munich group had denied that Bosch had the right to exercise the put option. The background to the dispute, which has been simmering for years, is the accusation by Bosch that Knorr-Bremse is competing with its long-standing partner in truck steering systems in a way that is contrary to agreements. The dispute escalated before Knorr-Bremse went public in 2018. Bosch had handed over its truck brake business to the Munich-based company more than 20 years ago and, in return, had joined SfN, in which Knorr-Bremse had bundled its European business. A second arbitration proceeding on the supply relationship between Knorr-Bremse and Bosch is still pending, said Weber.