Bhupesh Bhandari |
New Delhi
March 12, 2004
Last Updated at 00:00 IST
Atlas Copco, Ingersoll-Rand India deal stayed
| Atlas Copco's global acquisition of Ingersoll-Rand's drilling solutions business has hit a roadblock in India.
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| The Bombay High Court has stayed the acquisition till March 25 on a petition filed by Revathi Equipment, a Renaissance group company.
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| The Coimbatore-based Revathi Equipment has alleged that the acquisition will violate its non-competing agreement with Atlas Copco.
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| The A H Dalmia-promoted Renaissance group bought Revathi Equipment, a drilling equipment company, in 2002 from Atlas Copco for Rs 29.95 crore.
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| The group has claimed that a non-competing agreement was signed between the two companies at that time. If Atlas Copco is to acquire Ingersoll-Rand's drilling solutions business in India, the agreement will be breached, Revathi has said in its petition.
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| "A part of Ingersoll-Rand's drilling business competes with that of Revathi. That is why the company has gone to the court," a source close to the development told Business Standard.
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| According to the sources, a team of senior Atlas Copco executives from Sweden has already met senior functionaries of the Renaissance group. It could not be ascertained as to what transpired at the meeting.
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| However, sources said a possible solution could be Revathi Equipment buying out Ingersoll-Rand's drilling business in India.
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| When contacted, Atlas Copco (India) Managing Director Philip Davidson refused to comment.
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| In February this year, Atlas Copco had announced that it had signed an agreement with Ingersoll-Rand to acquire Ingersoll-Rand Drilling Solutions in a $225 million all-cash deal. The business has an annual turnover of $300 million and employs around 950 people.
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Takeover woes
- Revathi Equipment has alleged that Atlas Copco's acquisition of Ingersoll-Rand's drilling solutions business will violate its non-competing agreement with Atlas Copco
- The Renaissance group bought Revathi Equipment in 2002 from Atlas Copco for Rs 29.95 crore
- A possible solution could be Revathi Equipment buying out Ingersoll-Rand's drilling business in India
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