India Inc`s appetite to shop abroad seems to be growing by the day. India`s utility vehicle major, Mahindra & Mahindra (M&M) plans to add another German forging company, Schoeneweiss & Co to its already loaded shopping cart as part of attempts to grow its auto component footprint across the globe, reports Economic Times.
Though company officials refused to comment on the matter, sources close to the development said M&M is in advanced talks to buy the firm and a deal is expected soon. Sources further stated that the deal would be pegged at close to USD 150-200 million.
`We would not discuss our M&A strategies... All I can say is that we continue to look at opportunities across the globe, but our focus now would be low-cost countries,` said Mahindra Systems and Automotive Technologies president Hemant Luthra`the man driving M&M`s merger and acquisition strategy.`
Schoeneweiss is a major supplier to leading commercial vehicle manufacturers like DaimlerChrysler, MAN, Scania and Volvo. In addition, its client base includes global car-making biggies like Audi, BMW, DaimlerChrysler, Volvo, Bentley, Skoda and Volkswagen. The acquisition will add to M&M`s customer base besides giving it access to newer markets and technology.
This comes close to the heels of M&M buying a 67.9% stake in another German forging company Jeco Holding at an enterprise value of around Rs 8.3 billion.
The firm is also said to be looking at some acquisitions in the domestic market as part of plans to grow its auto component business to a USD 1-billion unit by the year 2010.
|
