Motherson Sumi to acquire 80-% stake in Germany’s Peguform
13 Jul 2011
Leading manufacturer of auto components Motherson Sumi Systems Ltd (MSSL) today said it would acquire an 80 per cent stake in Germany's Peguform Group from Cross Industries AG for a sum that was not revealed.
According to the company the acquisition would be effected jointly with group firm Samvardhana Motherson Finance Ltd.
The company said, in a statement, "At the meeting held on July 13, 2011, the board of directors of MSSL has in-principle approved the proposal to (jointly with Samvardhana Motherson Finance Limited) acquire 80 per cent of the shareholding of Peguform Group, Germany, from Cross Industries AG," it said.
The statement further said Cross industries would continue to hold a 20 per cent shareholding.
It added the acquisition would be done through a special purpose vehicle in which MSSL would hold 51 per cent and Samvardhana Motherson Finance Ltd hold a 49 per cent share.
"This (the acquisition) would also include 50 per cent holding in Wethje Carbon Composite, which is a part of Cross Industries," it said.
The acquisition is subject to regulatory and other necessary approvals.
Indian auto parts makers including Motherson Sumi, Bharat Forge Ltd and Amtek Auto Ltd are acquiring overseas companies to get access to new technology, enter new markets and increase sales. In March 2009, Motherson Sumi purchased the rear-view mirror business of UK-based Visiocorp PLC for around €25 million jointly with Samvardhana Motherson Finance.
