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ABC Bearings was locked in upper circuit of 20% at Rs 287, also its record high on BSE. Timken India surged 7% to Rs 725 after hitting high of Rs 738 on BSE in intra-day trade.
Shareholders of ABC Bearings will get five shares of Timken India for eight shares held on the record date.
“Timken India, a subsidiary of The Timken Company, a world leader in engineered bearings and mechanical power transmission products, announced that it has entered into definitive agreement to acquire ABC Bearings, through a court-approved amalgamation process,” Timken India said in a release.
ABC Bearings is a manufacturer of tapered, cylindrical and spherical roller bearings, and slewing rings.
“Timken is the leader of in the India bearing market and the acquisition of ABC Bearings will expand capacity, customer base and locally produced product breath,” said Richard G. Kyle, Timken president and chief executive officer.
“The demand for bearings in India is growing, and the addition of ABC Bearings will provide us with the ability to increase participation in local and export markets,” he added.
The stock of other bearings companies too surged up to 20% on the bourses after the acquisition announcements. Bimetal Bearings, Fag Bearings and SNL Bearings have hit their respective all-time highs on BSE.
|AUSTIN ENGG CO||69.00||59.00||16.95|
|NRB INDL BEARING||34.55||32.60||5.98|