Apollo to buy Tenneco in $7.1bn deal

Tenneco has agreed to be taken private by asset manager Apollo in a $7.1bn cash deal.

The purchase price of $20.00 per share represents a 100.4% premium over the closing share price of Tenneco on Tuesday.

Chairman Dennis Letham said: "We are pleased to have reached this agreement with Apollo, which we believe will deliver immediate and certain cash value to Tenneco shareholders at a substantial premium.

"The board's decision follows careful evaluation of the transaction and thoughtful and comprehensive review of value creation opportunities for Tenneco. We believe this transaction is the right path forward and achieves our goal of maximising value for Tenneco shareholders, and will benefit our team members, customers and business partners around the world."

The deal is expected to close in the second half of the year. Once it does, Tenneco's shares will no longer trade on the New York Stock Exchange and it will become a private company. It will continue to operate under the Tenneco name and brand.

Tenneco designs, manufactures and markets automotive products for original equipment and aftermarket customers.