Two days after Tata Motors bought the Jaguar and Land Rover brands from Ford for $2.3 billion, Telco Construction Equipment Company, a subsidiary of Tata Motors, bought the majority holding in a European construction firm.
Telcon, a 60:40 joint venture between Tata Motors and Hitachi Construction Machinery, Japan, has acquired 79 per cent in Spain-based Serviplem.
Serviplem is one of the world’s leading manufacturers of transit mixers, dry bulk tankers and pumps. The company has a strong presence in China and the acquisition will give Tata an entry into the Chinese construction space.
The acquisition also enables the group to strengthen its presence in the Aragon region in Spain, where it is already present through a partnership with Hispano Carrocera, a coach building company.
The technology would help Telcon to enter the concrete value chain with a number of offerings, said Ranaveer Sinha, Managing Director, Telcon.
This would be the Tata group's second acquisition in this week and the third buyout in 2008.
Earlier last month, Tata Chemicals bought US soda-ash producer General Chemicals Industrial Products for $1.01 billion.