New Tata acquisition: Telcon acquires 79-per cent stake in Serviplem SA
28 Mar 2008
The Tata Group seems to have accomplished an acquisition hat trick of three buyouts in as many days.
After Tata Motors' Jaguar-Land Rover deal and Tata Chemicals' takeover of US-based General Chemical Industrial Products, another Tata Group Company, Telco Construction Equipment Company (Telcon), has signed a deal to acquire a 79-per cent majority stake in Spain-based Serviplem SA.
Serviplem-Baryval is a globally ranked Spanish construction and equipment company based in Zaragoza, Spain, ranks amongst global top six in transit mixers, dry bulk tankers and pumps. Telcon is a joint venture between the Tatas with Hitachi Construction and Machinery, with the latter holding a 40 per cent stake.
With this deal, Telcon is set to acquire 79 per cent of Serviplem from the current owners, who will continue to own the remaining 21 per cent and be associated with the company. Serviplem's expertise in mixers and pumps will allow Telcon to diversify from current strengths in hardware to the concrete value chain.
Serviplem presently ranks first among truck-mounted concrete mixers in the domestic market (70 per cent of the market share), third in Europe and sixth internationally. It also has significant presence in Egypt and Thailand, with a worldwide footprint of 40 countries. Exports account for about 40 per cent of its annual production.
Speaking on the occasion of signing the agreement, managing director of Telcon Ranaveer Sinha said, ''This acquisition is of great strategic importance…we will work together to identify opportunities and leverage their presence in the global market''. He said that this acquisition was in line with Telcon's stated plans of emerging as a $2 billion entity by 2012.
''With this acquisition, Telcon can drive growth in two important growth economies - India and China,'' said Sinha, because Serviplem also has a presence in China through a joint venture, which can be leveraged. Serviplem holds a majority stake in this company set up in partnership with a local firm.
With this acquisition, the Tata Group will have a significant presence in the Aragon region of Spain as it is already present in the area through its partnership with Hispano Carrocera SA, a bus body building company, and its recently opened branch office at Zaragoza.
