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Sundram Fasteners plans buyout in Germany

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Our Corporate Bureau Chennai
Sundram Fasteners today announced that it proposes to buy a German fasteners company Peiner Umformtechnik. If the deal goes through, it would be Sundram Fasteners second auto component acquisition in Europe.

Sundram Fasteners plans to enter in to an agreement with Peiner's parent company, Textron Deutschland, to completely acquire Peiner. The value of the acquisition has not been finalised as yet, and is under negotiation.

The two parties, however, have presented the plan to the German Cartel Office for approval. It is understood the process is time bound. If the parties do not hear from the Cartel Office in about 30 days, the deal is taken to be implicitly approved.

Sundram Fasteners attempt to buy Peiner is primarily to gain access to the company's European customers. Peiner's client list includes leading European auto manufacturers.

Sundram Fasterners had in December 2003 acquired an UK forging facility, Cramlington Precision Forge, for $ 2.64 million. In the case of the Cramlington deal, Sundram Fasteners had said access to technology was a key factor in the purchase decision.

Peiner manufactures a wide range of fastener products catering to the auto, industrial and construction sectors, said the Sundram Fasteners notice to the stock exchanges.

An increasing proportion of Sundram Fasteners' sales has begun to come from exports. In 2004-05 a little over 25 per cent (Rs 261 crore) of the company's gross sales of Rs 1,037 crore came from exports.

 

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First Published: Nov 11 2005 | 12:00 AM IST

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