CEAT share price: On the BSE, shares of CEAT Ltd., one of the top tire producers in India, surged as much as 12.10% to reach their highest level ever, ₹3,466.40 a share.
The stock price increased after CEAT said on Friday that it had reached a final deal with Michelin to buy the off-highway tires (OHT) and tracks division of its Camso brand for roughly ₹225 million (roughly ₹1,905 crore).
“The acquisition is significant for CEAT in its ambition to become a leading global player in the high-margin OHT segment, as it will give the company access to a global customer base, including over 40 international OEMs and premium international OHT distributors,” the business stated in a statement.
Subject to regulatory permissions from the appropriate authorities, the deal will comprise two manufacturing sites, the company with CY 2023 revenues of about ₹213 million, and worldwide ownership of the Camso brand, according to the statement.
According to the firm, Camso is a high-end brand of construction equipment tires and tracks with a solid market position and equity in the EU and North American aftermarket and OEM markets.
“The Camso brand will be permanently assigned to CEAT across categories after a 3-year licensing period,” it stated.
According to the firm, this will broaden CEAT’s product line in the high-margin off-highway tyres (OHT) and tracks segments, which comprise material handling tyres, power sports tracks, harvester tyres, and agricultural tyres and tracks.
After this, Michelin will stop working on construction tracks and small line bias tires, the company announced.
Anant Goenka, Vice Chairman of RPG Enterprises, stated, “This acquisition has significant strategic consequences for CEAT as it catalyzes the company’s journey towards being a leading tyre maker globally.”
The owner of CEAT is RPG Group.
According to the company, CEAT has spent the previous ten years concentrating on expanding its OHT business, which now offers over 900 products and meets over 84% of the range requirements in the agriculture sector.
According to the firm, Camso will enable CEAT to diversify its product line into construction and track tires, opening the door for Camso to enter new markets including agricultural tires.
