Mahle may buy ArvinMeritor out of Purolator

Mahle Filtersysteme GmbH (MFS) of Germany is likely to buy a 50 per cent stake in automobile filter system manufacturer Purolator India Ltd, a part of the Rs 1,900 crore Anand group. The deal is likely to see MFS replace ArvinMeritor, the joint venture partner in Purolator India.

Purolator India is the market leader for air filter systems in India with a production capacity of 32 million units per annum. In addition, it has a filter paper impregnation plant, the largest of its kind in the country.

Although the Anand group confirmed that MFS would take the place of ArvinMeritor in the company, its executives did not provide a reason for the change in the joint venture's constitution. "The exit of ArvinMeritor from Purolator India has been decided through mutual consent," said a spokesperson of the Anand group.

MFS will take a 50 per cent stake in Purolator India by acquiring 39.27 per cent held by Purolator Products Company LLC, USA, a non-resident shareholder, and 10.73 percent stake held by resident shareholder Asia Investments Pvt Ltd. The price for the shares changing hands is yet to be decided.

MFS already has a fully owned subsidiary in India "" Mahle Filter Systems (India) Pvt Ltd "" engaged in the same area of business as Purolator India Ltd.

Until recently, Kirloskar Oil Engines Ltd was a joint venture partner in Mahle Filter Systems India with a five per cent stake, which was bought out by the German group.