B M Khaitan-controlled Williamson Magor (WM) group formally acquired KHD Humboldt Wedag International GmbH’s wholly owned subsidiary Humboldt Wedag Coal & Minerals Technology GmbH engaged in the business of supplying machines to the coal and minerals processing industry.
Khaitan group’s engineering firm, McNally Bharat Engineering Co, entered into ‘purchase agreements’ with the German firm to buy out the latter’s engineering workshop in Cologne and its coal and minerals based business along with its Kharagpur unit in West Bengal for a total consideration of $ 16 million (Rs 80 crore approx).
The Khaitans effected the acquisition through McNally Bharat Engineering’s wholly owned Singapore subsidiary MBE Holdings Pte after entering into an agreement with KHD Humboldt Wedag in May, the company said in a notice sent across the stock exchanges on Friday.
Incidentally, KHD Humboldt Wedag International GmbH is a a leading supplier of proprietary technologies, equipment and engineering services for cement, coal and minerals processing industry throughout the world. The German firm controls its coal and mineral-related technology businesses in different countries through Coal & Minerals Technology GmbH.
Speaking to mediapersons from Cologne, McNally Bharat Engineering Co chairman Deepak Khaitan said: "Since the due diligence was complete and necessary regulatory approvals in India and Germany obtained, we closed the transaction.
Total cash outgo amounts to $ 8 million excluding the liabilities which we will repay. The deal was funded by internal generation and debt from Axis Bank." The newly acquired company will be rechristened shortly.
"The move will further stimulate McNally Bharat Engineering’s growth in the near future and will, in all likelihood, make it one of the largest suppliers of coal and other mineral related equipment within and outside the country," he added.
Elaborating further, Mr Khaitan said, "We plan to grow our business in Canada, Australia, South America, Russia, China and South Africa so that McNally Bharat Engineering can bid for EPC (engineering, procurement, construction) of projects which procures these equipment from our Singaporean subsidiary."
It may be recalled Mr Khaitan had earlier indicated that the group is open to both organic as well as inorganic growth and has been looking at overseas countries including the US and Germany for acquisition or joint venture to obtain technology for business.
