CEAT zooms on entering into definitive agreement with Michelin
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Ceat is currently trading at Rs. 3424.40, up by 332.30 points or 10.75% from its previous closing of Rs. 3092.10 on the BSE.
The scrip opened at Rs. 3240.05 and has touched a high and low of Rs. 3444.95 and Rs. 3237.05 respectively. So far 34632 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 3,444.95 on 9-Dec-2024 and a 52 week low of Rs. 2211.00 on 13-May-2024.
Last one week high and low of the scrip stood at Rs. 3444.95 and Rs. 3055.90 respectively. The current market cap of the company is Rs. 13732.81 crore.
The promoters holding in the company stood at 47.21%, while Institutions and Non-Institutions held 36.39% and 16.40% respectively.
CEAT and Michelin have entered into a definitive agreement for CEAT to acquire Camso brand’s Off-Highway construction equipment bias tyre and tracks business from Michelin in an all-cash deal valued at about $225 million. The transaction will include the business with revenues of around $213 million for CY 2023 and global ownership of the Camso brand along with two state-of-the-art manufacturing facilities.
Camso is a premium brand in construction equipment tyre and tracks with strong equity and market position in EU and North American aftermarket and OE segments. The Camso brand will be permanently assigned to the company across categories after a 3-year licensing period. This will expand the company’s product portfolio in the high margin Off-Highway Tyres (OHT) and tracks segments, which includes agriculture tyres and tracks, harvester tyres and tracks, power sports tracks and material handling tyres. Michelin will thus exit from the activities related to Compact Line bias tyres and Construction tracks.
Both CEAT and Michelin are committed to a coordinated and smooth transition for customers, suppliers and all employees. The manufacturing facilities being acquired are located in Sri Lanka.
CEAT is among the best tyre manufacturers in India. It manufactures a wide range of tyres for two-wheelers, three-wheelers, four-wheelers, tractors and tippers and trucks. Besides tyres, the company also manufactures and markets tubes and flaps.
