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M&M gears up to buy Belgian company for 275 Mn pound
By siliconindia
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Saturday, 26 January 2008, 17:45 IST |
1 Comments
New Delhi: As part of consolidating its gear business in Europe, Mahindra & Mahindra (M&M), an Indian automotive major, is gearing up to take over the 200 million pound worth Belgian automotive gear maker VCST. The deal is likely to be worth about 275 million pound, including 125 million pound in debt, reported The Economic Times.
Hemant Luthra, president of Mahindra Systech, the automotive component division of M&M, however, refused comment on the issue.
Since the acquisition process has begun. Sources say that given the size of VCST, M&M may give up Metalcastello, the smaller Italian gear company it was in talks with.
Besides, M&M is also reportedly talking to another major gear maker in Europe for a strategic partnership. The plan is part of establishing its footprint in Europe by launching a gear business worth around 400 million pound (around Rs 2,200 crore - Rs 2,600 crore). M&M expects to take its share of the gear market in Europe to around 40 percent.
VCST already has a presence in India. In April last year, it formed a 50:50 joint venture with Amtek Auto. Amtek recently bought gear company Triplex Ketlon, which competes with VCST.
Once the deals are struck, it will be a part of common gears pool in which M&M and its strategic partner may take a stake.