Cummins to Buy Meritor in Push Toward Electrifying Trucks

Cummins Inc. agreed to buy Meritor Inc. for $2.58 billion to gain axle and brake technology for hybrid-electric and plug-in vehicle technology.

Cummins will pay $36.50 in cash for each Meritor share, the companies said in a statement Tuesday, 48% above Meritor’s last closing price. That comes to $2.58 billion based on the latest data available for the number of Meritor shares outstanding. The companies valued the deal at about $3.7 billion, including assumed debt and net acquired cash.