Apollo Global to buy auto-parts maker Tenneco for $1.6 bln in cash - Reuters

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Feb 23 (Reuters) - Tenneco Inc (TEN.N) has agreed to be bought by private-equity firm Apollo Global Management Inc (APO.N) for $1.64 billion in cash, the U.S. auto-parts maker said on Wednesday.

Tenneco shares nearly doubled in value and were trading slightly below the offer price of $20 before the bell. They were on track to open at over six-month highs.

This is the second multi-billion dollar deal in the industry in as many days, after Cummins Inc (CMI.N) offered to buy Meritor Inc (MTOR.N) for $2.58 billion.

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The auto-parts sector is in focus as it double efforts to supply software and components to an industry that is investing billions to develop electric and hybrid vehicles amid supply chain constraints.

On an enterprise basis, the deal is valued at $7.1 billion after taking into consideration Tenneco's long-term debt of $5.02 billion as of Dec. 31.

Lazard was the financial adviser for Tenneco, while Rothschild & Co, BofA Securities and Citi were financial advisers for Apollo.