M&M makes open offer of Rs. 490 crores to public shareholders to acquire Punjab Tractors

Mahindra & Mahindra Limited made a Rs. 490 crores ($110 mn) open offer for a further 20% in Punjab Tractors Limited and its subsidiaries, as required by law after it won the bidding for a 43.3% stake last week.

Mahindra, India’s top tractor and utility vehicle maker, and subsidiary Mahindra Holdings & Finance Limited are buying stakes held by private equity firm Actis and the Burman family in a deal that values Punjab at nearly Rs. 2200 crores.

In a newspaper advertisement, Mahindra made an offer to buy up to 12.15 mn shares from shareholders of Punjab Tractors, which makes tractors and farm equipment at Rs. 360 a share, the same price that it agreed to pay for the 43.3% stake. Separately, Mahindra made an offer to buy almost 480,000 shares, or 20%, in Swaraj Automotives Limited, in which Punjab Tractors owns 24.2%, at Rs. 244 per share. Mahindra also made an open offer to buy 20%, or 2.48 mn shares in Swaraj Engines Limited, in which Punjab Tractors owns 33.2%, at Rs. 151 a share.

The financing of the three offers would be through internal accruals and/or corporate borrowings. The offers open on May 3 and close on May 22.

Read the article in The Economic Times.
Related Post:
M&M wins Punjab Tractors bid; to pay Rs. 951 crores for 43.5% stake

M&M wins Punjab Tractors bid; to pay Rs. 951 crores for 43.5% stake

Mahindra & Mahindra (M&M), the country’s largest tractor company, has turned out to be the winner in the Punjab Tractors stake sale. M&M will shell out Rs. 360 per share for a 43.5% stake, valuing Punjab Tractors at around Rs. 2200 crores. M&M will end up paying a total consideration of a little over Rs. 951 crores in an all-cash deal to buy out private equity firm Actis and the Burman family of Dabur from Punjab Tractors. Actis will gross Rs. 634 crores from the sale of its 29% in Punjab Tractors, while the Burman family will get around Rs. 317 crores for its 14.5% stake.

The final round of bidding boiled down to a contest between M&M and Ashok Leyland. Initially, Ashok Leyland was known to have offered Rs. 320 per share of PTL while M&M was said to have made offers in the range of Rs. 330-335 per share. M&M also offered a part-cash, part-stock option but finally clinched the deal when it upped its all-cash offer to Rs 360 per share. M&M will now have to make an open offer to buy an additional 20% in Punjab Tractors, as per SEBI regulations.

Read the article in The Economic Times.

PTL bid results to come by Thursday evening; M&M leads bidding with cash and equity offer

The results of the Punjab Tractors stake sale are likely to come by Thursday evening. As reported earlier, Ashok Leyland and Mahindra and Mahindra (M&M) are the two leading bidders.

It is believed that M&M has proposed a highly unique offer of a mix of cash and equity for acquisition of the controlling 43.5% stake in Punjab Tractors Limited, put up for sale by current stake owners, private equity owner Actis and the Burman family. The offer works out to Rs. 340 a share, valuing the company at over Rs. 2100 crores, as against Ashok Leyland’s reported all-cash offer of Rs. 320 per share.

Both the offers demanded some guarantees from the seller on certain liabilities of the company, including its outstanding, inventories and legal tussle with Japanese firm Sumitomo.

Read the articles in The Economic Times 1 & 2 and Business Standard.

Ashok Leyland, M&M lead Punjab Tractors bid race; TAFE, Tatas back out, Tata Group buys plant in South Africa

Ashok Leyland Limited and Mahindra & Mahindra Limited appear to be the frontrunners in the race to acquire a stake of around 43% in Punjab Tractors Limited. The 43% stake has been put on the block by owners, Delhi-based private equity fund Actis and the Burman family, promoter of Dabur. According to unconfirmed reports, Ashok Leyland has placed a higher bid in the range of Rs. 320-380 per share. The Ashok Leyland bid demands some guarantees from the management. Details of M&M’s bid were not known.

If it does eventually manage to acquire the share, Ashok Leyland will have to make a mandatory open offer of another 20% of Punjab Tractors and would eventually become a majority shareholder of the company. An announcement on the stake sale is expected shortly. However, it is still not clear whether Leyland has also managed to acquire the 14% stake Punjab Tractors holds in group company Swaraj Mazda Limited and the 33% stake in Swaraj Engines Limited through the bidding process.

Punjab Tractors has strong brand equity in the tractor market, especially in the northern part of India and the winning bidder could enter the fast-growing tractor segment through this acquisition.

In a related development, of the four front-runners, the Tata Group, uncomfortable with the valuation of the deal, has backed out of the bidding process, while Tractor and Farm Equipment (TAFE) is also believed to have pulled out of the race. The final bids have seen the list of bidders for Punjab Tractors coming down significantly. That list includes Sonalika (International Tractors), Escorts, Italian tractor company Same Duetz-Fahr and a private equity consortium that was backing Punjab Tractors’ former boss Yash Mahajan.

Meanwhile, the Tata Group has acquired a car making plant in Pretoria in South Africa for an undisclosed amount, which will be used as a base for Tata Motors exports to Europe, besides catering to the South African market.

Read the articles in DNA Money and Business Standard.
Related Post: Actis and the Burmans seek re-bids for Punjab Tractors

Actis and the Burmans seek re-bids for Punjab Tractors

Private equity fund Actis and the Burman family, the promoters of Dabur, who together hold a controlling 43.5% in Punjab Tractors (PTL), have rejected offers for the acquisition of their stake from seven interested parties. These companies include Mahindra & Mahindra, Ashok Leyland and Sonalika Tractors and have now been asked to make binding bids by next Monday.

The re-bid was reportedly prompted due to the non-binding nature of the offers. Also, the bids were much lower than the company’s share price, which has shot up around 30% in the month after the bids were invited.

Actis holds 29.5% and the Burmans hold 14% in the Rs. 958-crore tractor company, while the rest is held by financial institutions, the public and banks. Punjab Tractors is India’s fourth-largest tractor making company, with an 8% market share.

Read Business Standard article.
Related Posts:
M&M, TAFE eye Actis’ 29% in Punjab Tractors
M&M, Escorts vie for stake in Punjab Tractors; Actis, Burmans to sell out
Ashok Leyland bids for Punjab Tractors

Autoline Industries acquires 51% stake in Belgian company Stokota

Pune-based Autoline Industries has acquired a 51% stake in Stokota, a Belgian special purpose vehicles maker, for Rs. 66.8 crores. Autoline is already contract manufacturing Stokota’s tippers, dumpers and tankers in India. It will fund the deal through a mix of internal accruals, debt and equity.

Autoline will provide 80% of the components to Stokota’s European operations based in Poland and will continue to assemble vehicles for the Indian, Middle Eastern and North African markets. Stokota also has a manufacturing facility in China, which caters to Australia, US and South-East Asia.

Stokota’s current customer base includes Volvo, Scania, MAN, Iveco, Renault, DAF, FAW and Deng Fong. It is the largest manufacturer of aluminium tankers in Europe. Post-merger, Stokota’s operations are expected to contribute Rs. 250 crores to Autoline’s consolidated revenue and Rs. 11 crores to its profit. Autoline, which recently listed on the bourses, expects to end the year with revenues of Rs. 210 crores and a profit after tax of Rs. 16 crores. Autoline has a tool design and manufacturing facility in Pune and is focused on sheet metal assemblies for automobile industry.

Read The Economic Times article.

Mahindra and Mahindra, Renault and Nissan form Rs. 4000 crore-joint venture in Tamil Nadu

Auto and auto components major Mahindra and Mahindra (M&M) has formed a tripartite joint venture with global auto giants, France’s Renault and Nissan from Japan, to set up a Rs. 4000 crore-greenfield automobile plant at Oragadam, near Chennai in Tamil Nadu. The facility will have a capacity to manufacture 400,000 units by 2009 and would be used by all the three auto majors for production of vehicles from their respective stables. M&M will hold 50% stake in the new venture, while the rest will be jointly head by Renault and Nissan of Japan. The Tamil Nadu government would provide land and incentives for the project. M&M President, automotive sector, Pawan Goenka was named the chairman of the JV company.

The Tamil Nadu government has already had some land and would acquire more to meet the needs of the facility, which would come up on a 925-acre plot. The new facility would see to it that those displaced due to acquisition of land for the project would be relocated at a place convenient to them. The new company would also start vocational schools in the area to train students and absorb them in the facility.

The project would consist of integrated automobile manufacturing facilities which would include engine plant, transmission plant, press shop, body shop, paint shop and assembly line, an official press release here said, adding this would be India’s biggest vehicle manufacturing centre at a single location. It would involve manufacture of 50,000 tractors per annum and there would be a Mahindra Research Valley in the Mahindra World City near Chennai.

The project would result in gross value addition of about Rs. 18,000 crores per annum to Tamil Nadu’s GDP and the additional investment in the State by vendors and supporting service providers was expected to be about Rs. 10,000 crores. The new facility would provide direct employment to 5000 people and indirect employment to many more.

M&M and Renault already have an existing JV which is manufacturing the Logan brand of cars.

Read the articles in The Economic Times and Business Standard.

Spanish firm Gestamp to acquire 37.5% stake in TACO

Spain-based Gestamp Servicios SL will acquire 37.5 % stake in Automotive Stampings & Assemblies Limited, a Tata Group company for a consideration of around Rs. 36.31 crores. Gestamp would acquire up to 37.5% of the paid-up equity share capital of the company from one of the promoters, Tata AutoComp Systems Limited (TACO), and partly through an open offer to the shareholders at a price of Rs 94.96 per share.

Post acquisition, Gestamp along with TACO and Tata Industries Limited would become the promoters of the company. Yes Bank is acting as the financial advisor to Gestamp Servicios. After completion of the sale of shares as above, the company would become a joint venture of TACO and Gestamp. Gestamp and TACO would eventually have a 50:50 equity stake in the company.

Read The Economic Times article.

Aurangabad-based Endurance acquires Italian, German die-casting firms

Aurangabad-based die-casting company Endurance Technologies has acquired two European aluminium die-casting firms, Nuova Renopress in Italy and Amann Druckguss in Germany. The combined deal size of both the acquisitions is €40 mn (Rs. 230 crores). Endurance has also acquired a 40% stake in Italian auto component company Paioli Meccanica for €6 mn (Rs. 34.46 crores), with an option of hiking the stake further at a later stage.

Nuova Renopress has a turnover of €25 mn, has a good technology base and boasts of customers like Honda, Bosch and Siemens. Amann Druckguss has a turnover of around €40 mn and has customers like Daimler-Chrysler, Porsche, MAN, Behr, John Deere and Audi.

Endurance Technologies belongs to the Rs. 1500 crore-Endurance Group. The Endurance Group had recently raised Rs. 150 crores in August 2006 from Standard Chartered Private Equity Fund. The company plans to hit the market in the next 18-24 months. KPMG was the advisor for the acquisitions. The acquisitions have been funded through a mix of internal accruals, proceeds of the private equity sale and debt.

Read the articles in Hindustan Times, The Economic Times and The Financial Express.
Related Post: Endurance Group buys German auto ancillary company

Ashok Leyland bids for Punjab Tractors

Truck and bus manufacturing company Ashok Leyland has put in a bid for Punjab Tractors Limited (PTL). With the acquisition of PTL, Ashok Leyland intends to gain access in the tractor business. Ashok Leyland’s tractor foray is part of its bigger strategy of becoming an integrated automotive player.

The company has already been cranking up its component business and has set up a separate auto components division. It is also setting up a new gear manufacturing facility for its component business with special focus on third-party jobs.

Read The Economic Times article.

Daewoo Motor India’s assets sold for Rs. 765 crores

Crosslinks Finelease, a company promoted by Hyundai’s ex-president BVR Subbu and SpiceJet promoter Ajay Singh, along with the backing of a number of private equity firms, have bought out Daewoo Motor India’s Surajpur assets for Rs. 765 crores. A payment of Rs. 300 crores will be made immediately and the balance Rs. 465 crores will be paid on a staggered basis through monies raised through convertible debentures and debt.

The Crosslinks bid was earlier contested by some of the other bidders such as JBM Auto and Adzons Media and was accordingly referred to the Debt Recovery Tribunal (DRT). However, The DRT has upheld ARCIL’s award of the bid by Crosslinks, thus ruling in the latter’s favour. Crosslinks will pump in an additional Rs. 300 crores to upgrade the plant, which will be completed in six months and the plant will become operational soon after.

The Crosslinks’ business plan is to turn the Surajpur plant into a neutral product platform for large scale auto component play. Crosslinks intends to use the plant to make engines, transmissions and pressed components on lease manufacturing basis for domestic as well as overseas markets.

Asset reconstruction company ARCIL, which had acquired Daewoo Motor India’s debt from banks, had recommended Crosslinks’ bid to the DRT. The Crosslinks’ bid is the highest that the asset has ever attracted. There were two rounds of auction for the Surajpur plant earlier, which did not work out because of the very high floor prices of Rs. 2000 crores and 1000 crores, respectively. This time around, the bids ranged from Rs. 400 crores to Rs. 700 crores and the names in the fray included the likes of Suryamoney Finance and Moksh Infotech. One of the major attractions of the asset is the 200 acre-land, though ARCIL has been clear it wants the plant to be used for manufacturing.

Read The Economic Times article.

Pawan Ruia makes open offer for Dunlop India and Falcon Tyres

The Pawan Ruia Group has made an open offer for Dunlop India and Falcon Tyres. This follows its indirect acquisition of these two outfits from the Jumbo Group in December 2005. The group had used a special purpose vehicle incorporated in Singapore called Wealth Sea Private Limited for the acquisition of Dil Rim & Wheels (DRW). DRW owns 74% stake in Dunlop India and close to 69% in Falcon Tyres.

The Ruias have announced an open offer for 20% in Dunlop at Rs. 10 per share. The open offer for Falcon would be at Rs. 151 per share. The total estimated outgo of the group for these twin offers would be Rs. 27.5 crores – Rs. 18 crores for Falcon Tyres and around Rs. 9.5 crores for Dunlop. The Ruia group already holds a 74.5% stake in Dunlop and over 70% in Falcon Tyres. The group has appointed Kolkata-based Microsec Capital as the manager to the offer. The group outfits Wealth Sea and Manali Properties would spearhead the open offer opening on March 24.

The Securities and Exchange Board of India (SEBI) had directed the Ruia group to make open offers for both the companies in November. The SEBI had said in its order that the indirect purchase of shares of Dunlop and Falcon in an overseas deal had violated the takeover code.

Read the Business Standard article.

M&M, Escorts vie for stake in Punjab Tractors; Actis, Burmans to sell out

Mahindra and Mahindra (M&M) has put in a non-binding bid for acquiring stake in Punjab Tractors. The Burman family, which holds a 14.5% stake in Punjab Tractors, is interested in selling its stake in the company. Private equity firm Actis which is another major stakeholder in Punjab Tractors has also put in its 29% stake in Punjab Tractors on the block. The Burmans, promoters of Dabur India, are reportedly interested in selling their stake to the buyer of Actis’ stake in the company. Escorts also has shown interest in buying stake in Punjab Tractors, but has not put in a formal bid yet.

Read the Business Standard articles – 1 2.
Related Post: M&M, TAFE eye Actis’ 29% in Punjab Tractors

JM Financial invests Rs. 120 crores in Sona Group

JM Financial India Fund, a $ 200 mn corporate private equity fund promoted by JM Financial Limited and Old Lane Partners LP will invest Rs.120 crores in the Sona Group. The investors have an option to invest another Rs.40 crores at a later stage. The investments include that in Sona Group companies including Sona Koyo Steering Systems Limited, Sona Okegawa Precision Forging Private Limited and other Sona Group Companies in the auto-ancillary space.

The Sona Group is an auto ancillary manufacturer with a diversified product range and enjoys industry leadership position in steering systems and precision forged gears. The investment by JM Financial will be used to expand capacities in the Sona Group’s subsidiary companies to meet domestic and export demand as well as for potential acquisitions.

Read the press release on Moneycontrol.com.

Auto component manufacturer Varroc acquires Italian forgings company Imes

Varroc Group, an automotive parts manufacturer, has acquired Imes SpA, an Italian hot forgings manufacturer, for an undisclosed sum. Imes has an annual installed capacity of 110,000 tons of forged parts and annual sales of about €60 mn with an EBIDTA of €12 mn in the last calendar year. Imes has manufacturing units in Italy and Poland, with large utilizable capacities in Poland. The acquisition has been financed by a combination of internal accruals and debt. Through the acquisition, Varroc hopes to enhance customer service to its clients in Europe by augmenting capacity and increasing product diversity. It would also shorten the length of supply chain to its clients, while preserving the benefits of low cost manufacturing. Varroc has significant presence in automotive components for two, three and four wheelers in the domestic and overseas markets supplying polymer, electrical and electronic and metallic components. It has 17 manufacturing facilities across Western and Northern India and is targeting a turnover of about $300 mn this fiscal.

Article in The Economic Times.

M&M to start new round of talks to buy Tractorul

Mahindra & Mahindra Limited (M&M) will begin a fresh round of negotiations with the government of Romania to acquire state-owned tractor-maker Tractorul Brasov SA after talks broke down between the two parties some days ago (See Related Post).

The bid had collapsed after the Romanian government rejected its debt guarantees. The Romania government has approached M&M again with a fresh proposal regarding the debt issue. A team of M&M officials is likely to fly down to Romania in the next few weeks. M&M has urged the Romanian government to write off Tractorul’s past liability of €180 mn.

Read the article in DNA Money.

M&M fails in its bid to buy Tractorul

Mahindra & Mahindra Limited’s (M&M) bid to buy Romanian tractor maker Tractorul Brasov SA has failed due to the Romanian government rejecting debt guarantees as sought by M&M. M&M has acquired a number of tractor companies and auto-parts companies overseas in the past as it seeks to gain technology and tap bigger markets. The Mumbai-based company plans to spend Rs. 400 crores ($90 mn) over the next two years on expansion and developing new models. The company plans to make more acquisitions outside India this year.

Read Anand Mahindra’s comments in the article in Business Standard.

Sasken Technologies, Tata company form auto electronics JV

The Economic Times reports that Tata AutoComp Systems Limited (TACO), a Tata Group company, and Bangalore-based embedded communications solutions firm Sasken Communication Technologies Limited has announced a JV partnership to design, develop and market automotive electronics products for the global market. The JV, TACO Sasken Automotive Electronics Private Limited, would address both OEMs and aftermarket It will initially focus on automotive electronics products in the areas of telematics, infotainment and occupant convenience. The company will start its operations from a state-of-the-art product development centre in Bangalore.

Tata Motors to bid for Daewoo Romania

The Tata Group is planning to buy Daewoo Automobile Romania. Daewoo Romania was established in 1994 as a 51:49 JV between the Daewoo Group and the Romanian government.

The Romanian plant can produce 100,000 cars, 150,000 engines and 200,000 trans-axles. Bidding for Daewoo Automobile Romania, would heat up because of interest from global automobile giants such as Ford and Renault-Nissan and the Tata Group, which is in the middle of a bidding war with Brazil’s CSN for the Anglo-Dutch steel-maker Corus. Daewoo Automobile Romania makes a range of Daewoo vehicles like the Matiz, Cielo, Nubira and Tacuma, and 1.5 litre petrol engines.

Daewoo was bought over by General Motors in 1999, but the US giant did not take over the Romanian venture. Recently, the Romanian government bought out Daewoo’s stake for $50 million and restructured the $10 million of the company’s debt.

Tata Motors last year acquired Nissan’s South Africa plant for an undisclosed amount. The year before, it took over Daewoo Commercial Vehicles for $102 mn.

Read the Business Standard article.

Amtek Auto to re-bid for UK plant

Amtek Auto may renew its bid to acquire JL French Automotive Casting’s Whitham plant in Essex in the UK. It had unsuccessfully attempted six months ago to acquire the plant. Two other die-casters, one each from China and Spain, have also shown interest in the Whitham plant.

Amtek has been expanding its presence in the UK for the last few years. In 2005, it bought Halberg Guss (Bourne), one of the largest die-casters in the UK.

The sale of the plant looks complicated as the acquirer wanted assurance from Ford Motors, JL French’s main customer, that it would continue its contract with the plant post-acquisition. Even the price of the acquisition depends on the assurance. However, with Ford itself undergoing a restructuring process, it is unlikely that the auto major would make any commitments.

The administrator of the plant, BDO Stay Hayward, would look for a quick solution as delay in selling the plant might force it to pull down shutters. The plant, which buys nearly 500 tonne aluminium alloy ingot, is losing over Rs. 50 crores a year. JL French put up its Whitham and Wales units for sale after it had filed for bankruptcy in April last year.

A clutch of foreign financial investors have invested in the Rs. 900 crore-Amtek Auto. Warburg Pincus tops the list with nearly 10% stake. The list of other foreign financial institutions includes CLSA, HSBC Global and Oppenheimer Fund. Swiss Finance Corporation is in the process of acquiring stake through subscription of preferential shares.

Read the Business Standard article.

International Tractors to divest 5% equity

International Tractors (ITL), makers of the Sonalika brand of tractors, is in for a fourth tranche of private placement by selling a 5% stake in the company to an undisclosed financial investor. This follows ITL privately placing 5% equity with JM Financial for around Rs. 125-150 crores. In March 2006, it placed 10% stake each in two group companies – ITL and utility-vehicle maker International Cars & Motors (ICML) – with UK-based private equity firm 3i for an estimated Rs. 300 crores. The 10% ITL stake netted around Rs. 200 crores for Sonalika, the balance coming from the 10% ICML stake. Before 3i, Citigroup and Yanmar had also bought stake in the group. The company had sold 10% stake in ITL and 20% in ICML to Citigroup in 2005.

Read the article in The Economic Times.

Setco acquires Haldex manufacturing facility in the US for around $5 mn

Clutch manufacturer Setco Automotive has acquired the US manufacturing facility of Haldex Brake Products Corporation for $4.9 mn (around Rs. 22-23 crores). The company has a presence in 14 countries and intends to set up operations in 30 countries in three years. Last year, around the same time, Setco had acquired the Lipe Clutch division of the Dana Corporation for Rs. 16 crores. The acquisition would be funded, 13 crores in part by internal accruals, and Rs. 9 crores by way of debt, provided by the New York branch of Bank of Baroda.

Setco has acquired the company through its overseas subsidiary Setco Automotive NA in the UK.

The company, formerly known as Gujarat Setco Clutch, has posted a net profit of Rs. 5 crores on a total income of Rs. 67 crores last year. Harish Sheth, currently the MD of the company, and his family are the promoters of the company and hold 65% stake. New Vernon Private Equity holds 14% and the rest is widely held by the public. Setco has been a supplier of clutches to all major Indian truck companies including Tata Motors, Eicher and Ashok Leyland.

Read the articles from Business Standard and The Economic Times.

Mahansaria, Warburg to buy Israel’s Alliance Tyre

Brothers Yogeshkumar and Ashokkumar Mahansaria, one of the promoters of Balkrishna Industries Limited (BIL), are quitting the tyre company owing to family differences. They have tied up with private equity firm Warburg Pincus to acquire Israeli tyre company Alliance Tyre for $45 mn. The transaction is expected to be completed before June 2007.

Alliance started negotiations with the two buyers, which will include an open offer for the public’s shares. The Mahansarias will float a new venture this year and the Alliance acquisition is a part of this move.

The management of Balkrishna Industries are not involved in the Alliance deal.

Read the article in Daily News and Analysis.

Endurance Group buys German auto ancillary company

Pune-based auto components company Endurance has acquired Amann Druckguss GmbH and Co KG, a German aluminium die casting manufacturer, in the range of Rs. 180-200 crores.

Amann Druckguss supplies to premium auto-makers such as DaimlerChrysler, Porsche, Audi and Behr. Endurance will supply engine, drive train and chassis components to them. Endurance has acquired Amann Druckguss from private equity firm Granville Baird Capital Partner Advisers.

This is the Pune-based company’s third overseas acquisition in the past one year. It acquired a 51% controlling stake in Nova Renopress of Bologna, which brought in customers like Honda, Bosch and Siemens, and a 40% stake in Paioli Meccanica SpA.

In August 2006, Standard Chartered Private Equity invested Rs. 150 crores in Endurance Technologies. The group is already scouting for another acquisition in the European market by March-end 2007, especially in the Italian, German and French for the acquisition of a Rs. 175-235 crore company.

Read The Economic Times article.

Mahindra & Mahindra to buy German forging firm Schoneweiss

Mahindra & Mahindra (M&M) is acquiring 90.47% stake in Germany-based forging company Schoneweiss. Schoneweiss is one of the top five axle beam manufacturers in the world, and specializes in suspension, power train and engine parts. The acquisition would be through its subsidiaries. However, financial details of the transaction were not disclosed.

Read The Calcutta Telegraph article.

M&M has been quite active on the acquisitions front. Last month, it announced the acquisition of casting and ferrites firm DGP Hinoday Industries. Then, in September, M&M announced that it would acquire a 67.9% stake in Jeco Holding AG, one of the top five forging companies in Germany, for an enterprise value of Rs. 830 crores (€140 mn). Last year, M&M bought Rajkot-based SAR Transmission. This was followed by the Amforge Chakan unit and Stokes Forging of the UK.