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Tenneco buys Icahn’s Federal-Mogul in deal worth $5.4B

activist investor Carl Icahn

Tenneco is buying Federal-Mogul from Carl Icahn. | AP file photo

NEW YORK — Lake Forest-based auto parts maker Tenneco is buying Federal-Mogul and will split the company into two parts.

Tenneco is acquiring the debt heavy auto parts company from Carl Icahn’s company in a deal worth about $5.4 billion.

Icahn Enterprises will get $800 million in cash and 29.5 million shares from Tenneco.

Icahn Enterprises bought a majority stake in Federal-Mogul in 2008 and took full ownership of the company last year.

Tenneco expects the deal to close later this year and it plans to split the Southfield, Michigan, company’s auto parts and powertrain technology wings into individual entities in 2019.