Schaeffler India on consolidation drive, merges two arms
Domestic arm of German automotive and industrial major Schaeffler (formerly FAG Bearings India) today announced merger of its two arms--INA Bearings and LuK India to improve cost and supply-side efficiencies.
The combined entity hopes to grow 10 per cent post-amalgamation.
Under the merger scheme, Schaeffler India will issue 10 equity shares each to every 65 shares of INA India, and 35 shares of LuK India.
The merger will be completed in the third quarter of 2018, subject to all approvals, the company said.
"The key objective of the merger is to combine the strengths and competencies of all three Schaeffler entities here and establish one strong listed Schaeffler entity," Schaeffler AG chief executive Klaus Rosenfeld said in a concall here.
He further said the new entity will have Rs 3,570 crore revenues and four plants, one R&D center and about 3,000 employees.
When asked about the revenue expectation from the combined entity, Rosenfeld told
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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