Auto components company Mahindra CIE (MCIE) will acquire the business of Aurangabad Electricals Limited (AEL), a leading manufacturer of automotive aluminium die casting components, for an enterprise value of ₹87 billion (US$126 million).
“The acquisition marks MCIE’s entry into the Indian aluminium die-casting market and is a key part of replicating CIE’s global portfolio mix,” Srinath Dasari, senior partner at AZB & Partners, told India Business Law Journal. “Aluminium die casting is expected to play a larger role owing to te electrification of the auto industry.”
MCIE is a joint venture between Spanish group CIE Automotive and Mahindra & Mahindra. The acquisition is expected to complete around mid-April 2019.