Amtek Auto buys Germany's Kuepper group, stock rallies

Shares of Amtek India and Amtek Auto rallied 14 percent and 9 percent respectively in intraday trade on Thursday.

Investors are excited about both the stocks as Amtek India has entered into an agreement to acquire substantial business interests in Kuepper group of Germany, through its 100 percent subsidiaries, reported CNBC-TV18.

Reports suggest that deal value is 200 million euros (around Rs 1680 crore).

[caption id="attachment_1084091" align="alignright" width="380"] Kuepper is the market leader in machine casting industry, with big clients BMW, Daimler and Volkswagen. Reuters[/caption]

The deal may provide Amtek access to high-tech German machining technology and new product customers from Europe.

The deal, which is likely to be announced in a few days and will add clients like BMW, Daimler and Volkswagen and increase its consolidated capacity to more than one million tonnes per year, Economic Times reported.

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It is likely to bring synergy with Amtek's core expertise in casting and forging operations and strengthens its market position.

Kuepper is the market leader in machine casting industry, with big clients BMW, Daimler and Volkswagen. Kuepper has four manufacturing facilities across Germany and one in Hungary. The Kuepper group is engaged in the business of iron and aluminium casting and integrated machining having five manufacturing units across Germany and Hungary.

Amtek Group, along with its subsidiaries now operates 60 facilities in India, the UK, Germany, Brazil, Italy, Mexico, Russia and the US.