Early in April, Tenneco announced an agreement to acquire Federal-Mogul from Icahn Enterprises in a $5.4 billion deal. Jim Lang, president of Lang Marketing, says that Carl Icahn’s sale of Federal-Mogul answers a lot of questions on where he’s taking his enterprise going forward.
Tenneco intends to separate the combined businesses into two independent, publicly traded companies. One company will focus on aftermarket and ride performance products, while the other will be geared toward powertrain technology.
Jim Lang says Carl Icahn is practicing vertical integration. Contrary to horizontal integration, where firms control one component of a market or process, vertical integration engages multiple segments of production.