New Delhi, Dec 9 (PTI) Shares of tyre maker CEAT rallied over 10 per cent on Monday after the RPG Group firm entered into a definitive agreement with Michelin to acquire Camso brand's Off-highway Tyres and tracks business for about Rs 1,905 crore.
On the BSE, the stock of the company soared 10.10 per cent to finish at Rs 3,404.45 apiece.
On the NSE, it climbed 7.54 per cent to end at Rs 3,329 per piece.
In the intraday trade, CEAT's shares advanced 16 per cent to hit a 52-week high of Rs 3,581.45 and Rs 3,578.80, on the BSE and NSE, respectively.
In terms of volume, 55.55 lakh equity shares of CEAT were traded on the National Stock Exchange (NSE), while 1.67 lakh scrips were exchanged hands on the BSE, during the day.
The 30-share BSE Sensex declined 200.66 points or 0.25 per cent to settle at 81,508.46, while NSE Nifty dropped 58.80 points or 0.24 per cent to close at 24,619.
On Friday, CEAT said it has entered into a definitive agreement with Michelin to acquire its Camso brand's Off-highway Tyres (OHT) and tracks business for about USD 225 million (Rs 1,905 crore).
The acquisition is significant for CEAT in its ambition to become a leading global player in the high-margin OHT segment, as it will give the company access to a global customer base, including over 40 international OEMs (original equipment manufacturers) and premium international OHT distributors, the company said.
Camso is a premium brand in construction equipment tyres and tracks with strong equity and market position in the European Union and North American aftermarket and OE segments.
"The track segment is growing faster and (also) has a larger premium play with the customers yet to figure out the right applications of tracks in construction and mining, which means there is a lot of scope for higher penetration in the track segment. So, between the two, tyres and tracks, the latter is more attractive, where CEAT will focus on growth," CEAT Managing Director and CEO Arnab Banerjee told PTI in an interaction.