New plant expected to boost company's revenues, margins
The company will set up new manufacturing facility at Bharuch, Gujarat to manufacture Spherical Roller Bearings (SRB), Cylindrical Roller Bearings (CRB), and other components
M&M closed with a bullish engulfing pattern on the daily chart with a jump in volumes
The BSE Sensex and the Nifty 50 stand currently 10 per cent higher from the May 2021 levels, and if positive sentiment continues, the market may repeated a similar bull run.
Going forward, Timken is expected to perform better with sustainable margins, new product launches and better performance in Indian CV & PV segment.
Timken India (Timken), having doubled it capacities in FY17 to tap growth opportunities, is paying a significant premium for acquiring ABC Bearings. On Wednesday, Timken entered into a definitive agreement to acquire ABC Bearings (ABC) in an all stock deal. The deal will see Timken issue five shares of the company for every eight shares held in ABC, to the latter's shareholders. Although Timken is paying a whopping 77.43 per cent premium to ABC's shareholders (based on Tuesday's closing prices and swap ratio), the same looks justified given that ABC's portfolio fits well into Timken's product portfolio. Also, the opportunities now existing in the bearing industry are immense, and the move will help Timken fructify its long-term growth goals.For ABC, which comparatively is a smaller entity (FY17 revenues just about a fifth of Timken's), their shareholders will now become a part of a multinational group (MNC) and a strong brand; Timken India is 75 per cent owned by US-headquartered The .
Timken India entered into definitive agreement to acquire ABC Bearings