Italy's Brembo acquires Sweden's Öhlins in $390m merger

The world's largest manufacturer of braking systems has merged with the Swedish giant producing suspension components.

The acquisition decision was announced on Friday, 11 October. Italy's Brembo, one of the largest European automotive industry powerhouses, has taken under its wing Sweden's Öhlins, a specialist in suspensions, particularly sporty ones.

The agreement, valued at approximately £325 million, was signed after Brembo sold a minority stake (5.6%) to tire manufacturer Pirelli.

"Öhlins is a perfect match for Brembo. It's a brand known worldwide, with a solid business and an unmatched reputation, both on the racetrack and on the road," said Brembo's CEO, Matteo Tiraboschi.

"By joining forces with Brembo, we're thrilled to open up new development opportunities and leverage our strengths and assets to drive innovation and provide even greater value to our customers and employees," stated Tom Wittenschlaeger, CEO of Öhlins Racing.

The merger is not surprising, as products from both companies have been an inseparable pair in many cars and motorcycles. It's likely that this will now be even more common. Regular customers probably won't notice this merger.

More may happen, however, in the world of motorsport, where Öhlins has a stronger position than Brembo. It is possible that the Italians will decide to use this to intensify their presence in racing with their products.