London: Automotive engineering major Renold Plc said it is in talks with Indian firm LG Balakrishnan & Bros for acquiring 75% stake in its industrial chain business for an undisclosed amount.
In a regulatory filing made to the London Stock Exchange, the company said “.. it is in discussions to acquire a 75% interest in the industrial chain business of LG Balakrishnan & Bros Ltd (LGB).”
LGB would provide an established manufacturing base and sales distribution network. “This network would enable Renold to promote its existing product range into India’s rapidly growing market place as well as exploit new product, market and export opportunities,” the filing said.
Renold Plc, which expects to announce its FY’08 results on June 25, said that the deal would come into effect with the attainment of the required regulatory and LGB shareholders approval. Last year, the company had acquired China-based Renold Hangzhou.
The principal activities of Renold Group include manufacturing and sale of industrial chains and related power transmission products.