$1.5 billion deal! Tega Industries acquires Molycop, will the stock see action tomorrow?

News Topical, Digital Desk : Tega Industries, a manufacturer of consumables for the mining industry, today announced plans to acquire global grinding media supplier Molycop. The deal will be done in consortium with funds managed by affiliates of Apollo Funds. According to information received from the company, the enterprise value of the transaction is approximately $1.5 billion. Tega Industrie Share closed at Rs 2,076 per share on Wednesday, down about 0.85%.

With this acquisition, Tega Industries will become a major player in the global mining consumables market. After this, the company's joint unit will offer a large product portfolio for mining, mineral processing and material handling industries.

What did the management say on the acquisition plan?
Regarding this announcement, Mehul Mohanka, Managing Director and Group CEO of Tega Industries, expressed enthusiasm about the deal and said that it is a strategic fit and will increase the possibility of accelerating innovation and market expansion. Apollo partner Gaurav Pant said that there is an opportunity to invest in additional technology and capacity in the joint institution. What are the necessary terms of this acquisition? Under the agreement, Tega Industries will become the controlling shareholder of Molycap. While Apollo Funds will have minority equity interest. After the transaction closure, the focus will be on operational and business integration in the first 8 quarters. It is expected that this deal will be completed by 31 December 2025. Tega Industries has a strong presence in Europe, Middle East, Latin America and Africa. The company will now be strengthened by Molycop's activities in the US, Canada, Latin America and Australia. With the addition of Molycop's 13 manufacturing facilities and 3 joint ventures, Tega will have a total of 26 global manufacturing sites. Company in preparation to raise funds Along with the announcement of the acquisition, Tega Industries has also announced a plan to raise funds. The company is calling a board meeting on September 13, 2025, in which options to raise funds through equity or debt will be considered. Potentially this fund can be raised through private placement or qualified institutional placement (QIP). 

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