Bharat Forge Signs INR 545 Crore Deal to Acquire AAM India The transaction is pending approval from the Competition Commission of India (CCI) and will be finalized once all regulatory and customary conditions are met. The timeline for closure is contingent on receiving the necessary clearances.
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Bharat Forge Limited announced on Thursday that it has entered into a definitive agreement to acquire AAM India Manufacturing Corporation Private Limited (AAMIMCPL), a subsidiary of American Axle & Manufacturing Holdings (AAM). The acquisition is valued at INR 545 crore, subject to final closing adjustments.
AAMIMCPL, established in 2008, is a major player in manufacturing axles for light, medium, and heavy-duty commercial trucks as well as passenger buses in India. The acquisition will provide Bharat Forge with access to AAMIMCPL's commercial vehicle axle business in Pune and Chennai, alongside the Pune Engineering and Development Center.
The transaction is pending approval from the Competition Commission of India (CCI) and will be finalized once all regulatory and customary conditions are met. The timeline for closure is contingent on receiving the necessary clearances.
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, expressed optimism about the acquisition, stating, "We are excited to welcome the AAMIMCPL team to Bharat Forge. Their technical expertise and industry relationships will help us scale our operations over the medium to long term."
He added that the acquisition marks a significant step in Bharat Forge's expansion strategy. "This deal enables Bharat Forge to enter a new business segment, further broadening our portfolio of vehicle components."
From the seller's perspective, David C. Dauch, Chairman and CEO of American Axle & Manufacturing, emphasized the strategic importance of the sale. "This decision allows us to sharpen our focus on internal combustion engine (ICE), hybrid, and fully electric vehicles globally, including pickup trucks, SUVs, and vans. It also enhances our financial flexibility," Dauch noted. He further stated that AAM is committed to working closely with Bharat Forge to ensure a smooth transition and uninterrupted supply to customers.
The deal was advised by Lincoln International on the sell side. At the time of the announcement, Bharat Forge's shares were trading at INR 1,460.25 on the BSE, down by 1 per cent as of 2:30 pm.
This acquisition is expected to boost Bharat Forge's capabilities and market presence in the automotive components sector, particularly in the commercial vehicle segment.
