Knorr-Bremse, Bosch settle legal dispute over JV

Knorr-Bremse, the global supplier of braking systems and other technologies for rail and commercial vehicle applications, and Robert Bosch GmbH have resolved a legal dispute over the sale price of shares representing a 20% stake in the joint ventures Knorr-Bremse Systeme für Nutzfahrzeuge GmbH and Knorr-Bremse Commercial Vehicle Systems Japan Ltd.

(Photo: Knorr-Bremse)

Upon payment of a total purchase price of €360 million ($411.5 million), Knorr-Bremse AG will - subject to the approval of the antitrust authorities - acquire the shares and become the sole shareholder of both Knorr-Bremse Systeme für Nutzfahrzeuge GmbH and Knorr-Bremse Commercial Vehicle Systems Japan Ltd.

In June of 2018, Robert Bosch GmbH declared that it was exercising a put option in respect of its minority interest in Knorr-Bremse Systeme für Knorr-Bremse Systeme für Nutzfahrzeuge GmbH, and initiated arbitration proceedings with the aim of enforcing the option. In December 2020, the court of arbitration issued a ruling confirming the validity of the option. Since 2018, Knorr- Bremse has regularly reported an amount of around €380 million ($389.9 million) as a liability in the consolidated annual balance sheet.

Knorr-Bremse has been responsible for the operational management of the joint venture’s business activities since it was first launched in 1999. Following the acquisition of the remaining shares, all IP rights, employees, and systems know-how will remain with Knorr-Bremse. Furthermore, by acquiring the shares and paying the purchase price, Knorr-Bremse has saved - the annual profit-sharing payments that would otherwise have to be made to Robert Bosch GmbH in the future.