BEML to acquire residual stake Brazilian JV CCC
BS last week reported that Bharat Earth Movers Limited is looking for 100% buyout of Brazilian Companhia Comercio E Construcoes for a total consideration in excess of INR 100 crore and that the acquisition is expected to be complete by 2008.
The report cites Mr M Poonavaranam director mining and construction of BEML as saying that "We are in the process of acquiring the residual stake in our JV partner CCC. The transaction would be complete within a year."
BEML will acquire all the asset of CCC, which includes an assembly unit and would cater to companies like CVRD and has already registered itself in the state of Vitoria as a legal entity.
BEML has a JV agreement with CCC for manufacturing and supply of rail wagons & bogies, mining & construction equipment and spares for the Brazilian market.
The mining and construction industry in the Latin American region is growing rapidly due to the heavy concentration of firms like CVRD, which is engaged in iron ore mining. The region has seen faster growth in that sector due to the country's surging industrial growth.
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