The Hindu Business Line : Amtek Auto to consider purchase of UK company

DOMESTIC auto ancillaries company, Amtek Auto Ltd, is considering to buy 100 per cent controlling stake in the United Kingdom-based GWK group of companies, which comprises GWK Group and two 100 per cent subsidiaries, King Automotive Systems Ltd. and Geo W King Ltd.

The GWK group of companies is engaged in the manufacturing of automotive components and has a turnover exceeding Rs 900 crore. The issue will be raised at Amtek Auto's board meeting to be held on March 16. GWK manufactures engine components and drivetrains among other products, and is an OEM supplier to auto majors such as Ford and General Motors.

The proposed acquisition, industry analysts say, could be among the biggest foreign buy-outs by an Indian auto components company. Indian auto components have been steadily spreading their wings outside India.

Amtek Auto had last year invested Rs 28 crore in buying out 100 per cent equity in New Smith Jones Inc, based in USA, which makes ring gears and flex plates. Similarly, Bharat Forge had in November last year bought one of Germany's largest forging firms, Carl Dan Peddinghaus.

According to market analysts, Amtek Auto could pay approximately Rs 160 to Rs 170 crore for the acquisition of GWK. According to information available on the company's website, the Amtek Group of companies has completed five acquisitions in the last three years.

More Stories on : Mergers & Acquisitions | Automobile Components

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