Shares of Bharat Forge Ltd. ended the day flat after reaching a day’s high of Rs 1,478.80 on 17th October, following the announcement that the firm has entered into a definitive agreement to acquire AAM India Manufacturing Corporation Pvt. Ltd., a subsidiary of American Axle & Manufacturing Holdings.

This acquisition will occur at an enterprise value of Rs 544.5 crore, subject to closing adjustments. AAM India Manufacturing Corporation manufactures axles for light, medium, and heavy-duty commercial trucks and passenger buses in India.

After this transaction, the company will acquire AAM India’s commercial vehicle axle business in Pune and Chennai and the Pune Engineering and Development Center.

The transaction requires approval from the Competition Commission of India (CCI) and will only close once this approval is obtained, and all other customary closing conditions are fulfilled.

Amit Kalyani, Vice Chairman and Joint MD of Bharat Forge expressed optimism about leveraging AAM India’s technical expertise and industry relationships to scale up the business over the medium to long term.

AAM Chairman and CEO David Dauch stated that selling its commercial vehicle axle business in India will allow the company to focus on internal combustion engines (ICE), hybrid, and fully electric passenger vehicle applications globally while providing financial flexibility.

At 3:30 PM, the shares of Bharat Forge closed 0.34% lower at Rs 1,470 on NSE.

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