Amtek Auto rallies over 8% on acquisition plans in Germany

NEW DELHI: Amtek Auto Ltd surged as much as 8.2 per cent in trade on Tuesday, after media reports suggested that India's largest auto component makers, is all set to acquire Scholz Edelstahl GmbH of Germany, according to multiple people close to development.

Scholz is a high quality hot die forgings manufacturer for both auto and non-auto component industry with annual turnover of around Euro 175 million (or about Euro 1,200 crore), ET reported.

At 09:40 a.m.; Amtek Auto pared some of the morning gains but was still trading 4.5 per cent higher at Rs 155.40. It hit a low of Rs 154.55 and a high of Rs 161 in trade today.

The acquisition will be done though Amtek Auto's whollyowned Singapore subsidiary Amtek Precision Engineering, said two people close to the development. John Flintham, global CEO of Amtek Group, confirmed the firm's interest in Scholz.

ET had in November reported that Amtek is set to make three overseas acquisitions. Scholz is one of them. Company sources said the other two deals are yet to fructify.

The buy will also reinforce Amtek Group's position after its successful integration of recentlyacquired German companies Neumayer Tekfor and Kuepper Group, making it one of the largest integrated global forging, casting and machining entities, said one person close to the development.