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Motherson Sumi Systems to acquire 80% of Peguform Group, Germany

13 Jul 2011 Evaluate

Motherson Sumi Systems will soon finalise acquisition of 80% of the shareholding of Peguform Group, Germany from Cross Industries AC, who would continue to hold 20% shareholding. This acquisition would also include 50% holding in Wethje Carbon Composite which is a part of Cross Industries.

The company’s board at its meeting held on July 13, 2011 has considered and accorded it’s in principle approval to acquire an overseas entity. The acquisition would be made through a joint venture company in which Motherson Sumi Systems would hold 51% and Samvardhana Motherson Finance would hold 49% share.

Recently, Motherson Sumi Systems had received approval for the merger of its three group firms with itself as it in the process of consolidating its business. The company was looking to merge Sumi Motherson Innovative Engineering (SMIEL), MSSL Global Wiring (MGWL) and India Nails Manufacturing (INMPL) with itself. The company had received the approval for the merger at its board meeting held on April 28, 2011. These consolidations are the part of the company plans as it has set a target of becoming a $5 billion entity by 2015.

Motherson Sumi Systems (MSSL) is engaged in manufacturing a range of products from single circuit lead wire to complex cabin harnesses and from small harnesses to harnesses for large cranes and elevators. MSSL also supplies wiring harnesses to material handling, earth moving and farm equipment, white goods & electronics, elevators, office automation and medical equipment industries. MSSL is the largest manufacturer of wiring harnesses in India.

SamvardhanaMotherson Share Price

123.20 -1.80 (-1.44%)
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