A pattern emerges; in February last year, ARM sold its emissions control business to venture firm One Equity Partners, and pocketed $310 million in the process. Seen by many as the least sunset part of the Meritor portfolio, the emissions control business was sold for one reason alone; in order to pay the bills.

Is a similar funding shortfall behind the divestment of the LVS biz? Certainly, the presence of a separate company within the group makes for a convenient place to stack some debt, but, at the same time, returning ARM to a business model that focuses entirely upon the irredeemably cyclical heavy truck sector seems to be a high risk idea. The loss of a single contract – always possible in a business that continues to verticalise – would be at best problematic.

We think that there is more to come here.