Bharat Forge Limited has recently made a big splash in the automotive sector with its announcement of the acquisition of AAM India Manufacturing Corporation Private Limited (AAMIMCPL). The deal, which is valued at a whopping ₹5,445.30 million, is aimed at helping Bharat Forge expand its presence in the commercial vehicle component industry.
AAMIMCPL is a well-known manufacturer of axles for light, medium, and heavy-duty commercial trucks, as well as passenger buses in India. With a solid reputation in the industry since its establishment in 2008, AAMIMCPL is a valuable addition to Bharat Forge’s portfolio.
The acquisition includes AAMIMCPL’s commercial vehicle axle business in Pune and Chennai, as well as the Pune Engineering and Development Center. However, the deal is still subject to regulatory approval from the Competition Commission of India (CCI) and other standard closing conditions.
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge Limited, expressed excitement about the acquisition and the potential for growth it brings. He mentioned leveraging the technical expertise and relationships of the AAMIMCPL team to scale up the business in the long term.
On the other side, David C. Dauch, Chairman and CEO of AAM, explained the strategic reasons behind selling the commercial vehicle axle business in India. This move allows AAM to focus on other areas such as ICE, hybrid, and full electric passenger vehicles globally while also gaining financial flexibility to enhance its core business areas.
Both companies are committed to ensuring a smooth transition during the ownership change, prioritizing uninterrupted supply to customers from the Pune and Chennai facilities.
Following the announcement, Bharat Forge’s shares experienced a slight decline on the Bombay Stock Exchange, trading at ₹1,460.25 by 2:30 PM. Lincoln International played a key role as the sell-side advisor for the transaction.
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