After the Federal-Mogul deal closes in the second half of this year, Tenneco would separate its combined businesses into two independent, publicly traded companies in the second half of 2019.
The deal would be funded with a combination of $800 million in cash, 5.7 million shares of Tenneco Class A common stock, 23.8 million shares of non-voting class B common stock and debt.
Federal-Mogul is an automotive supplier based in suburban Detroit that sells its products under several brands including Champion, Interfil and Goetze. Icahn Enterprises had acquired majority control of Federal-Mogul in 2008.
Lake Forest, Illinois-based Tenneco makes products including catalytic converters, diesel particulate filters and shock absorbers.