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FRANKFURT (Reuters) - German truck and trailer parts maker Jost Group said it was in advanced talks to buy Mercedes-Benz TrailerAxleSystems from Daimler (DE:DAIGn), which is seeking to cut costs.
Mercedes-Benz TrailerAxleSystems specialises in the manufacture of commercial-vehicle axles, a business that would be complementary for Jost, which is controlled by private equity firm Cinven (CINV.UL).
"With the integration of Mercedes-Benz TrailerAxleSystems we could offer our clients a significantly expanded product portfolio," Jost Chief Executive Lars Brorsen said in an e-mailed statement.
Daimler was not immediately available for comment.
The German maker of luxury cars and trucks wants to achieve cost reductions worth 1.6 billion euros by the end of the year at its trucks division while increasing earnings before interest and taxes (EBIT).
Jost has about 2,500 employees and is based in Neu-Isenburg, outside of Frankfurt.
The acquisition would be part of the private-equity owner's strategy to put Jost onto a more international footing ahead of a potential stock market listing, which may not come until late 2015 or 2016.
Jost struck a deal in 2010 to restructure its finances, avoiding a looming insolvency and cutting its loan burden through a debt-for-equity swap.
Cinven saw its 77 percent stake in the company cut to 64 percent, while Jost's management retained a stake of more than 23 percent and junior debtholders converted their claims into preferred shares, giving them a 13 percent stake.
The deal included a 50 million euro (39.32 million pounds) cash injection from Cinven and mezzanine lenders.
(Reporting by Georgina Prodhan, Alexander Huebner and Arno Schuetze; Editing by Edward Taylor and Pravin Char)