Kubota, a major machine maker, has announced that it will acquire an Indian tractor maker for about 140 billion yen.
The aim is to expand our business not only in India, where growth is expected in the future, but also in markets in other emerging countries.
According to the announcement, Kubota will raise the investment ratio of the major Indian tractor maker "Escorts", which already holds more than 9% of the shares, to a maximum of 53.5% through a takeover bid for TOB = shares and make it a subsidiary. increase.
The amount of the acquisition is expected to reach 140 billion yen in Japanese yen, which is the largest acquisition ever made by Kubota.
In India, low-priced tractors with narrowed functions are used for farm work and cargo transportation, and are considered to be the world's largest market on a unit basis.
With this acquisition, Kubota aims to expand its market share in India, where growth is expected in the future, and at the same time, it will become a development and production base for emerging countries such as Africa and Southeast Asia.
At a press conference in Osaka City, Kubota President Yuichi Kitao said, "In 2030, we would like to double our share of the Indian market to about 25%."