Amtek Auto rallies 8% on Tekfor Neumayer acquisition plans

NEW DELHI: Amtek Auto Ltd surged over 8 per cent in trade on Monday following reports that the the firm, one of the largest integrated auto component manufacturers in India, is close to acquiring NeumayerTekfor Group of Germany.

“Amtek could pay as much as $500 million (Rs 2,717 crore) to consummate the deal, which would make it one of the world's largest global forging and integrated machining companies with a consolidated capacity of 1 million tonne per year,” ET reported.

At 09:50 am, Amtek Auto was trading 7.8 per cent higher at Rs 76.50. It has hit a low of Rs 73.10 and a high of Rs 80.45 in trade today.

This will be the second significant acquisition by an Indian auto component company in the recent past. Once the transaction is completed, Amtek's turnover will be close to $2 billion (Rs 10,870 crore).

Media reports suggest that a formal announcement to the stock exchanges is likely to be made early this week.

Tekfor currently operates nine manufacturing facilities across Germany, the US, Brazil, Mexico and Italy with a turnover of around $650 million (Rs 3,532 crore). Amtek Auto Group has 43 manufacturing facilities with 39 located in India and four in Europe.

According to the company website, India currently accounts for 87 per cent of Amtek Auto's revenues while the remaining comes from overseas markets.