Motherson Sumi to buy Finnish firm for Rs 4,146 cr

New Delhi, January 20

India’s biggest auto components manufacturer Motherson Sumi System Ltd has offered to buy Finnish truck wire harness maker PKC Group for 571 million euros (Rs 4,146 crore) to expand global presence.

Motherson has offered 23.55 euros per PKC share, representing 51% premium to the closing price on Thursday, in a public tender. The acquisition is expected to be completed by the end of March, Motherson said.

PKC said its Board is backing the offer. “Combining the companies will create a leading supplier of wiring systems and components for the worldwide transportation industry,” it said.

While Motherson will gain access to PKC’s presence in the US and European commercial vehicle market, the merger will help the Finnish company expand in the Asia Pacific region.

Motherson Sumi will make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in PKC. — PTI