Foseco in talks to acquire Morganite Crucible

Foseco is in talks to acquire Morganite Crucible in a cash and stock deal, according to sources aware of the matter.

ET could not ascertain the value of the deal.

The deal if it concludes will bring together the Indian arms of two global companies that serve similar industries such as metals and components manufacturing.

As per the plan under discussion, promoters of Morganite Crucibles will become shareholders of Foseco, according to sources. This will be by way of a share swap. Public shareholders of Morganite Crucible will be offered cash if they wish to give up their shares in an open offer. As per sebi norms, Foseco will have to make an open offer to acquire upto 26% of public shareholders of Morganite Crucible.

Foseco is part of the $2.4 billion UK-headquartered Vesuvius which makes products for the steel and foundry casting industries. Foseco’s Indian entity is listed and is nearly 75% owned by the global parent.

Morganite Crucibles which is also listed in India is part of UK-headquartered Morgan Advanced Materials. Morganite Crucible is 75% owned by global entities of Morgan Advanced Materials. The rest of the shares are with public shareholders.

The company makes crucibles or containers that can withstand high temperatures and are used in the processing of ferrous and non-ferrous metals.

Foseco and Morganite Crucible did not respond to ET’s queries on the matter.