India’s Amtek Auto is the front runner for Frankfurt-based KSM Castings, a supplier of light metal casting products for the automotive industry.
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According to the Economic Times of India newspaper, the deal is expected to be worth around EUR250m and would be one of the largest acquisitions by an Indian company in the automotive forging sector, if it goes through.
Amtek Auto managing director Arvind Dham declined to comment to the paper. But a source told the Economic Times the proposed acquisition is part of Amtek’s strategy to consolidate its business in Europe where it already has around 40% market share in the west.
Amtek recently bought UK-based gear company Triplex Ketlon after acquiring US-based ring gears manufacturer Midwest Manufacturing in 2002 followed by UK-based GWK and Lloyds Brierly Hill.
Other companies that it has acquired in the past include Sigmacast Iron and the aluminium casting facility of Germany-based Zelter, the Economic Times said.
More than 75% of the company’s revenues are contributed by sale of components to passenger car makers.
