Shares of CEAT Jump 12%; Acquires Camso for $225 Million

Shares of CEAT Ltd soared by 12.10% to an all-time-high of ₹3,466.40 apiece on the BSE. This comes after the Indian tyre maker acquired Camso for about $225 million (about ₹1,905 crore) from Michelin.

The acquisition will pave the way for CEAT's product portfolio in the high-margin off-highway tyres (OHT) and tracks segments. This includes agriculture tyres and tracks, harvester tyres and tracks among many.

The company said. “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 and premium international OHT distributors.”

Camso is engaged in manufacturing products for off-road vehicles, which includes tyres, wheels, tracks and track systems. The company’s products are used in sectors including construction and agricultural industries.

The company said, “The Camso brand will be permanently assigned to CEAT across categories after a 3-year licensing period.”

Anant Goenka, Vice Chairman, RPG Enterprises said, “This acquisition has significant strategic consequences for CEAT as it catalyses the company's journey towards being a leading tyre maker globally.”

Owned by RPG Group, CEAT is aiming to expand OHT business, which consists of 900+ product offerings. It’s India’s leading tyre maker, which manufactures tyres for passenger cars, two-wheelers, trucks, buses, light commercial vehicles and off-highway vehicles.