TRW Automotive Holdings has received a preliminary takeover approach from Germany’s ZF Friedrichshafen. If the move goes ahead it would create the world’s second-largest automotive parts supplier, based on sales volume.

TRW has confirmed that it has received a preliminary, non-binding proposal and a later ZF statement says that it is in talks with TRW about a possible offer.

It is thought that ZF is especially keen to acquire accident prevention technology being developed by TRW which utilises radars and digital cameras to alert driver to a potential collision and activate avoidance systems.

ZF and TRW would have some $40 billion in annual sales, ranking the potential group as number two in the market, although there is no guarantee that the talks will lead to a firm deal.

ZF currently ranks ninth among automotive parts suppliers, with TRW at 11th, based on 2013 sales. Bosch is currently the number global automotive parts supplier.