M&M set to acquire Schoeneweiss
Close on the heels of announcing the largest acquistion by an Indian company in the automotive component space, auto major Mahindra and Mahindra on Thursday said that it is in discussions with the promoters of German-based forging company Schoeneweiss & Co GmbH to acquire a majority stake from the promoters in Schoeneweiss & Co GmbH.
The company, in relation to the proposed acquisition, is required to seek approval from the German Federal Cartel under a relevant German law against restraints of competition and has approached the German authorities for their approval (an enabling approval) in anticipation of the finalisation of the transaction.
The proposed acquisition is subject to the finalisation of the transaction structure, fulfillment of certain condition precedents and other corporate regulatory approvals as may be required, it said.
"The company has a capacity of 50,000 tonne per annum and its clients include blue chips companies in the auto sector including Scania, MAN, DaimlerChrysler," Systek president Hemant Luthra told FE declining to comment on the size of the deal.
The transaction is likely to be completed by the year-end, he said, adding that the company was also looking at further acquisitions in Europe and America as many of the companies are looking to sell-off.
The company, he said, is also looking at increasing its capacity within the next 12 months. "We will be increasing our capacity in India to 80,000 tonne from 40,000 tonne in the next 12 months, he said, adding that the total capacity of the company would increase to somewhere in the range of 2,50,000-2,75,000 tonne in the next one year.
Earlier in September, the company had struck a deal to acquire a 67.9% stake in Jeco Holdings for an enterprise value of 140 million euros (Rs 830 crore). Jeco, with a capacity of 1,00,000 tonne per annum and a turnover of 180 million euros, manufactures forgings for gear boxes, engine and axle parts, hubs, gears and piston heads for the truck, bus and trailer market. Its main customers include DaimlerChrysler Group, ZF Group, MAN Nutzfahrzeuge, Volvo, Linde, Renault, Agco, Kessler and Kolbenschmidt.
Mahindra had also acquired a majority stake in UK-based Stokes Group in January this year and an 88.41% stake in Bangalore-based Plexion Technologies for a consideration of $10 million.
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