New Delhi: Mahindra & Mahindra on Thursday announced the acquisition of 67.9 per cent stake in Jeco Holding AG, one of the leading forging companies of Germany, for 140 million euros, making the deal the largest outbound acquisition by an Indian company in the auto component arena.
The transaction is subject to receipt of necessary approvals.
''With this acquisition, the Mahindra group has taken a decisive and important step towards creating a global class and scale business in auto components. This creates a platform that enables us to pursue our vision of building the auto components business as one of the core businesses of the Mahindra Group,'' MD and Vice Chairman Anand Mahindra said.
Jeco Holding AG, with over 120 years of experience, is primarily focused on the truck, bus and trailer market. Its major products include gearboxes, engine and axle pans, hubs, gears and piston heads.
The company has forging production of 1,00,000 tonnes per annum and revenue turnover of Euro 180 million for the Calendar Year 2005. Its customers include Daimler Chrysler Group, ZE Group, MAN Nutzfahrzeuge, Volvo, Linde, Renault, Agco, Kessler and Kolbenschmidt.
Scholz AG holds 90 per cent of stake in Jeco Holding AG with the remaining 10 per cent held by management. The company expects to benefit from the continued presence of the erstwhile shareholders and management of JECO Holding AG in further building the business of JECO.
Thomas Komer will continue to hold the position of Chief Executive Officer.
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