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New Delhi-based Motherson Sumi Systems Ltd (MSSL) has entered into an agreement to acquire Finnish truck wire maker PKC Group for 571 million euros (about Rs 4,000 crore). The acquisition will be made through a wholly-owned subsidiary of MSSL.
MSSL and PKC have on January 19 entered into a combination agreement for the proposed transaction. PKC shareholders are being offered a cash consideration of EUR 23.55 for each share/options, MSSL said in a statement.
“MSSL will make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in PKC. The shares of PKC are currently listed on the Nasdaq Helsinki stock exchange,” it said in a statement.
Headquartered in Helsinki, Finland, PKC is a global tier 1 supplier of wiring harness and associated components to original equipment manufacturers in the Heavy & Medium Duty commercial vehicles and locomotive segments across North America, Europe, Brazil and China.
The transaction, subject to regulatory approvals, is expected to be completed by March-end.
Auto component manufacturers in India has been scouting for buys across Europe and Asia, including India.
Also Read: Indian auto component firms on a shopping spree
The New Delhi-based company’s intention pretty much sums ups the mood of the sector, with as much as 15 Indian companies on the lookout for buys across Europe and Asia, including India.
MSSL, with a revenue forecast of $18 billion by 2020, expects $6-8 billion addition through acquisitions.
It had been on an acquisition spree since 2009, the latest being that of Hungary-based Abraham es Tarsa Kft’s Automotive Business Unit in September 2016. The others being Stoneridge Inc’s wiring harness business (2014), Scherer & Trier’s assets (2014), Peguform (2011) and Visiocorp’s rear view mirror business in 2009.
“We are always looking into possibilities for acquisitions. They are at the behest of customers and to the best interest for our stakeholders,” said MSSL Chairman Vivek Chaand Sehgal told BusinessLine on early this month.
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