Bharat Forge Limited, a leading name in the auto components industry, has announced a major acquisition. The company has signed an agreement to acquire AAM India Manufacturing Corporation Private Limited (AAMIMCPL), a subsidiary of American Axle & Manufacturing Holdings (AAM). This acquisition deal is valued at Rs 545 crore, subject to final closing adjustments.
AAMIMCPL Business and Expertise
Founded in 2008, AAMIMCPL is a key player in the Indian automotive industry. The company manufactures axles for light, medium, and heavy-duty commercial trucks, as well as passenger buses. With production facilities in Pune and Chennai, the acquisition will provide Bharat Forge access to AAMIMCPL’s commercial vehicle axle business and the Pune Engineering and Development Center.
Pending Regulatory Approvals
The acquisition is currently awaiting approval from the Competition Commission of India (CCI). The transaction is expected to close after all regulatory and customary conditions are met. The timeline for final closure depends on obtaining the necessary clearances.
Bharat Forge Expansion Strategy
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, expressed optimism about the deal. He mentioned that the technical expertise and industry relationships that AAMIMCPL brings will help Bharat Forge scale its operations in the medium to long term. He also emphasized that this acquisition marks a significant step in Bharat Forge’s expansion strategy, as it allows the company to enter a new business segment, thereby broadening its portfolio of vehicle components.
Focus on Global Expansion
From the seller’s perspective, David C. Dauch, Chairman and CEO of American Axle & Manufacturing, highlighted that the sale aligns with AAM’s strategic focus on internal combustion engine (ICE), hybrid, and electric vehicles globally. He added that the deal will enhance AAM’s financial flexibility, allowing the company to concentrate on producing components for pickup trucks, SUVs, and vans. Dauch assured that AAM would collaborate with Bharat Forge to ensure a smooth transition and continued supply to customers.
Bharat Forge Market Presence
The acquisition of AAMIMCPL is expected to strengthen Bharat Forge’s position in the automotive components market, particularly in the commercial vehicle segment. This move is set to boost Bharat Forge’s capabilities, expand its product offerings, and increase its competitiveness in the sector.
