Escorts stock rises after CCI approves acquisition of additional stake by Kubota

3 Feb 2022 , 02:46 PM

The Competition Commission of India (CCI) approves the acquisition of certain additional equity by Kubota Corporation (Kubota/ Acquirer) of Escorts Limited (Escorts/ Target) under Section 31(1) of the Competition Act, 2002.

The Proposed Combination involves Kubota’s acquisition of certain additional equity shares of Escorts by way of preferential allotment and a mandatory tender offer in compliance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Kubota was founded in 1890, and it is a company incorporated under the laws of Japan. Kubota is a comprehensive agriculture product manufacturer and offers various machinery such as tractors, combine harvesters, and rice transplanters. Kubota also offers engineering, procurement, construction to maintenance, contributing to the safety and security of water.

At around 2.44 pm, Escorts was trading at Rs1858 per piece up by Rs16.30  or 0.9% on BSE. The stock has touched an intraday high and low of Rs1881.80 per piece and Rs1854 per piece respectively.