Timken India, having doubled it capacities in financial year 2016-17 (FY17) to tap growth opportunities, is paying a significant premium to acquire ABC Bearings. On Wednesday, Timken entered into a definitive agreement to acquire ABC in an all-stock deal. The deal will see Timken issue five shares of the company for every eight shares held in ABC to the latter’s shareholders. Although Timken is paying a 77.43 per cent premium to ABC’s shareholders (based on Tuesday’s closing prices and swap ratio), the same looks justified, given that ABC’s portfolio fits well into Timken’s product portfolio. Also, the opportunities existing