MWM is owned by Navistar International Corp, a subsidiary of German-based automaker Traton SE. Tupi said it reported operating net revenue of 2.7 billion reais in 2021.
see photosTupy’s shares were up 8% at 18.11 reais in the afternoon, falling 0.1%
Brazilian auto parts company Tupy SA has signed a deal to buy motor maker MWM, formally known as International Industria Automotiva da America do Sul, with Tupy sending its shares sharply higher on Monday. Said sending. Tupi said in a securities filing that the enterprise value of the deal is 865 million reais ($184.2 million). MWM is owned by Navistar International Corp, a subsidiary of German-based automaker Traton SE. Tupi said it reported operating net revenue of 2.7 billion reais in 2021. The company makes engines for Brazilian, European and North American trucks, buses and machine makers, and also converts motors to allow them to run on natural gas, biodiesel, biogas and biomethane, Tupi said.
“This transaction is in line with Tupi’s growth strategy in current businesses, adding value to its products, and in promoting viable decarbonization solutions, benefiting from the high potential for biofuels (in Brazil),” it added.
Shares of Tupi rose 8% to 18.11 in afternoon trading, outperforming Brazil’s main stock index Bovespa, which fell 0.1%.
Analysts at BTG Pactual, which rate Tupy Buy, said the deal would add value to the company.
“We believe this deal creates strategic value for Tupi, leading to decarbonization of the economy and increased exposure to the aftermarket segment,” he added.
Tupi said it is evaluating its capital allocation strategy for the deal, taking into account third-party funding as well as its own resources. Payment will be made after the transaction is closed.
The transaction requires approval from the Brazilian antitrust watchdog CADE.
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