CEAT Share Price Today: Stock Up 10% – Why Is CEAT On A Roll?

CEAT saw a significant uptick in its stock price on Monday, opening at Rs 3,240 and trading at Rs 3,416, up Rs 323.90 or 10.48 per cent. The surge followed a strong showing on Friday, where the stock closed at Rs 3,092.10.

What’s behind this surge in the stock?
On December 6, 2024, RPG Group-owned CEAT announced the acquisition of Michelin's Camso brand’s Off-Highway construction equipment tyre and tracks business in a deal valued at about $225 million. CEAT clarified that this transaction involves the acquisition of business assets rather than a stake purchase.

CEAT Buys Michelin's Camso Business At $225 Million
This acquisition involves Camso’s business, which generated revenues of $213 million in 2023. Additionally, it includes two manufacturing facilities and global ownership of the Camso brand after an initial 3-year licensing period. CEAT aims to expand its product portfolio into the Off-Highway Tyre and tracks segment, which includes agricultural tyres, harvester tyres, power sports tracks, and material handling tyres.

CEAT’s Vice Chairman, Anant Goenka, described the deal as “a significant strategic consequence” for the company, accelerating its journey toward becoming a global tyre leader.

“Access to the most premium customers, a high-quality brand and a qualified global workforce is what excites us the most about this acquisition. The track segment is a technologically superior segment with a limited number of global players,” said Arnab Banerjee, MD & CEO of CEAT. 

Also Read: Stock Market LIVE: Sensex Opens 61 Points Lower, Nifty Holds Below 24,700 | Republic Business

Disclaimer

The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds