CEAT's High-Octane Leap: Acquiring Michelin's Camso Brand to Drive Global Expansion

CEAT shares surged over 12% following its agreement with Michelin to acquire the Camso brand's off-highway tyres and tracks business for $225 million. This acquisition aligns with CEAT's strategy to become a leading player in the global off-highway segment, leveraging Camso's established market presence and clientele.

Shares of CEAT, the tire-making arm of the RPG Group, saw an impressive rally on Monday as the company confirmed its acquisition of Michelin's Camso brand's off-highway tires and tracks business. The deal, valued at USD 225 million (Rs 1,905 crore), sparked a surge in CEAT's market valuation.

Throughout the day, CEAT shares spiked, achieving a 52-week high on both the BSE and NSE platforms. At the BSE, the share price surged to Rs 3,466.40, marking a 12.10 per cent climb, while on the NSE, it reached Rs 3,469 after a 12.06 per cent increase. This buoyancy is attributed to the strategic importance of the Camso acquisition, which aligns with CEAT's global ambitions.

The acquisition is a pivotal move for CEAT, as it opens doors to a worldwide client base, including over 40 international original equipment manufacturers and high-end distributors. According to CEAT's Managing Director, Arnab Banerjee, the track segment, part of this acquisition, presents substantial growth potential, particularly within construction and mining sectors.

(With inputs from agencies.)