Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5972
    -0.0003 (-0.05%)
     
  • NZD/EUR

    0.5535
    +0.0002 (+0.04%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,353.21
    +185.14 (+0.46%)
     
  • NZD/JPY

    90.3380
    -0.0550 (-0.06%)
     

Tenneco (TEN) to Buy Federal-Mogul From Carl Icahn for $5.4B

Tenneco Inc. TEN announced its plan to purchase automotive supplier Federal-Mogul for $5.4 billion from Icahn Enterprises LP, run by the activist and investor Carl Icahn, per Reuters. Tenneco anticipates the deal to close later this year.

Auto parts manufacturer Tenneco also intends to divide the company into two independent, publicly traded entities in the second half of 2019. One will comprise the powertrain products while the other will include auto parts such as suspensions and axle dampers. Through this deal, Icahn Enterprises will receive $800 million in cash and 29.5 million shares from Tenneco.

Southfield, MI-based Federal-Mogul is an automotive supplier that offers quality products, trusted brands and creative solutions to manufacturers of automotive, light-commercial, heavy-duty and off-highway vehicles as well as to power generation, aerospace, marine, rail and industrial manufacturers. The company sells products under several brands, including Champion, Interfil and Goetze. Icahn Enterprises acquired the majority control of Federal-Mogul in 2008. On the other hand, Lake Forest, IL-based Tenneco manufactures products, including catalytic converters, diesel-particulate filters and shock absorbers.

In the past six months, Tenneco has underperformed the industry it belongs to. Its shares have declined 5.5% compared with the industry’s decline of 0.6%.



Tenneco carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few other top-ranked stocks in the auto space are Honda Motor Co., Ltd. HMC, Allison Transmission Holdings, Inc. ALSN and Toyota Motor Corporation TM. While both Honda and Allison Transmission Holdings sport a Zacks Rank #1, Toyota carries a Zacks Rank #2.

Honda has expected long-term growth rate of 5.2%. In the past year, shares of the company have returned 23.8%.

Allison Transmission has expected long-term growth rate of 10%. In a year, shares of the company have returned 13.2%.

Toyota has expected long-term growth rate of 6.1%. Shares of the company have advanced 21.7% in the past year.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenues and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
 
Toyota Motor Corporation (TM) : Free Stock Analysis Report
 
Tenneco Inc. (TEN) : Free Stock Analysis Report
 
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research