Manufacturing giant SAF-Holland has made a bid to buy out Swedish brake and suspension supplier Haldex, with an all cash offer worth $647 million AUD.

SAF-Holland aims to reach $2.2 billion AUD in sales by 2020, and according to CEO Delef Borghardt, an integrated product offering is a way to reach the target ahead of schedule.

“With our highly complementary businesses, we would form a new integrated champion for chassis-related commercial vehicle components and serve our customers’ increasing demand for aggregate solutions even better,” Borghardt said.

“Together, we would form a one-stop shopping solution provider for a wide range of components, from Electronic Braking System modules installed together with brakes to axles systems combined with suspensions.

“In addition, the transaction would significantly strengthen the aftermarket position of the combine group and allow both companies to jointly establish a clear front-runner position in the high-margin, low-cyclical aftermarket business.”

While the offer is yet to be accepted by Haldex shareholders, a statement confirmed the board would respond to the offer at least two-weeks prior to 24 August.