Motherson Sumi to acquire Finland's PKC Group

One of India's leading auto component maker Motherson Sumi, which counts Daimler AG, Volkswagen, Maruti Suzuki and so on, as its top clients, plans to buy Nasdaq Helsinki listed PKC Group.

Motherson Sumi Systems (MSS) has informed BSE that the board of directors of the company at their meeting held on January 19, 2017 have approved a proposal to make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in Finnish truck wire maker PKC Group. The acquisition will be made through a wholly-owned subsidiary of Motherson Sumi, to be setup for the purpose with the consideration of USD 609 million.

Headquartered in Finland, PKC Group is a preferred supplier in electrical distribution systems for the transportation industry globally. It is a global tier-1 supplier of wiring harness and associated components to original equipment manufacturers (OEMs) in the Heavy and Medium Duty Commercial Vehicles and Locomotive segments across North America, Europe, Brazil and China.

Post announcement shares of Motherson Sumi surged more than 4 per cent in trade at Rs 336.40 on National Stock Exchange of India (NSE).