Stock Fundamentals

Greaves Cotton heats up on acquisition news

Parvatha Vardhini C | Updated on September 02, 2018 Published on September 02, 2018

 

The Greaves Cotton stock moved up by 7.8 per cent last Thursday, after the company announced the acquisition of a majority stake in Ampere Vehicles. Ampere is into the design, development and manufacture of electric cycles, bikes, three-wheelers and customised vehicles. While the contours of the deal have not been disclosed, reports indicate that Greaves has acquired a 67 per cent stake in the first phase at ₹77 crore. The stake acquisition is significant, as it comes at a time when serious concerns about the effects of vehicle pollution are moving India towards cleaner BS VI fuel as well as greater adoption of electric vehicles.

 

In the business of manufacture of generator sets and engines for three-wheelers and small trucks, the deal will provide Greaves with access to clean energy technology to develop mobility solutions for the future. For Ampere, this move will help leverage Greave Cotton’s distribution and service network to expand the reach of its products.

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