Tata group acquires second Spanish companyApril 4th, 2008 - 5:37 pm ICT by admin
Ahmedabad, April 4 (IANS) The Tata group’s acquisition spree in Spain continues. A week after buying strategic stake in Serviplem, a construction equipment firm, the group has bought controlling stake in another Spanish company with interests in similar areas - Comoplesa Lebrero. Telcon, a subsidiary of Tata Motors, has acquired 60 percent stake in Lebrero, which is also located at Zargoza like Serviplem is, and manufactures road construction equipment.
“This acquisition helps Telcon’s strength and adds relevance to last week’s Serviplem deal in enhancing product offering in the road, general construction value chain,” said Ranaveer Sinha, managing director of Telcon.
Since 1954, Lebrero has developed its own technology and has sold its machinery globally. It also makes bitumen tanks and auxiliary machinery for public works.
The acquisition of Lebrero gives Telcon and its joint venture partner, Hitachi, access to compaction equipment technology that the Indian company could exploit internationally.
As in the case of Serviplem, the cost of the acquisition has not been disclosed. A statement from Telcon said under the agreement, the existing shareholders will retain 40 percent stake and continued to associate themselves with the venture.
Sinha said Telcon, Hitachi and Lebrero would work jointly to identify business opportunities worldwide and leverage their presence for mutual benefit.
Lebrero has been dealing with Telcon for some four years in sourcing components for its products and hence the acquisition was only expected to strengthen the association further, a company statement said.
Tags: acquisition spree, auxiliary machinery, compaction equipment, construction value, equipment technology, general construction, hitachi, joint venture, managing director, mutual benefit, own technology, percent stake, product offering, road construction equipment, spanish company, tata group, tata motors, telcon, value chain, venture partner