Atlas Copco recently announced its intention to buy the outstanding shares in Atlas Copco (India) Ltd. At US$5 a share, it is more than a 40% premium compared to the 26-week average of the closing high-low price quoted on the National stock exchange.
Explaining the move, Atlas Copco Group Treasurer, Staffan Nordin, said “This offer is in line with our global philosophy of owning 100% holding in our subsidiaries worldwide”.
Coming off the back of a successful 2002, Atlas Copco is cautiously optimistic about the coming year, enabling it to consolidate after recent acquisitions.
For instance, the integration of Wagner is an important focus for the company in 2003. Atlas Copco is currently transferring the production of loaders and mining trucks from Atlas Copco Wagner, Portland, US, to the Rock Excavation Technology Centre in Örebro, Sweden. Wagner is seen as core to the business, commanding a 35% share of its market.
Although the Swedish Kroner has gained in value, putting pressure on some parts of its business, such as its light construction equipment sales, orders across the construction and mining arm are up 15%, with drilling equipment for construction in good demand.
Looking further a field, Lars Engström president of Atlas Copco Rock Drilling Equipment, recently told journalists: “China is a priority market.”
