• Expected to enter Phase III shortly
• Deal draws industrial complaints
• Conditional clearance still possible

China’s antitrust review of HARMAN International’s proposed acquisition of the Advanced Driver Assistance Systems (ADAS) business from ZF Friedrichshafen was in the Phase II stage of the State Administration for Market Regulation (SAMR) merger review process as of last week, according to two sources familiar with the matter.

The review is proceeding under the agency’s normal procedure, the sources said. It is about to enter the final 60-day Phase III, the first source said. SAMR’s review consists of a 30-day Phase I, a 90-day Phase II, and a 60-day Phase III.

The deal has drawn complaints from industrial participants, the first source said. It has attracted significant attention from Chinese ADAS suppliers and automotive manufacturers, the second source said, noting that ADAS remains a particularly sensitive sector from SAMR’s perspective.

The transaction could ultimately require a conditional clearance, both sources said. However, the review is currently at the request-for-information (RFI) stage, and no remedy discussions have taken place, the second source said. The source further noted that ZF’s ADAS technology is regarded as particularly strong.

ZF is widely viewed as one of the leading foreign Tier-1 automotive suppliers, alongside Bosch, Continental, Valeo and Magna, although international players are facing intensifying competition from domestic Chinese rivals.

In February 2024, ZF became the first foreign automotive parts supplier to obtain a Level 4 autonomous driving test license in China. In October 2025, ZF and Chinese technology firm Horizon Robotics announced a plan to launch a jointly developed ADAS system for the Chinese market, targeting mass production in 2026.

According to public remarks by Holger Klein, chairman and CEO of ZF, the company’s Level 2 driving-assistance solutions have been supplied to Geely’s Zeekr brand since 2023. ZF also reported USD 805m in China revenue from its electronics and ADAS division in 2023.

The EUR 1.5bn transaction, announced on 23 December 2025, will see HARMAN International, a leading global automotive technology and lifestyle audio company and wholly owned subsidiary of Samsung Electronics, acquire ZF’s passenger-car ADAS business. The assets include automotive computing platforms, smart cameras, radar technologies and ADAS software functions.

The transaction is expected to close in the second half of 2026, subject to regulatory approvals.

The deal received unconditional clearance in Mexico on 6 August and was notified to the European Commission on 4 September.

HARMAN and ZF did not respond to requests for comment.

SAMR does not comment on ongoing deals.