Livemint.com 17 August 2012
India’s biggest engineering and construction conglomerate Larsen and Toubro Ltd (L&T) is planning to acquire the entire stake of US-based Flowserve Corp. in their 50:50 joint venture (JV) Audco India Ltd, according to an internal discussion held last week, to strengthen its core valves business.
The development was confirmed by three company executives who declined to be named as they are not company spokespersons. They said the company is reviewing its partnerships and will mostly seek majority shareholding in JVs going forward.
The $12.8 billion (Rs. 71,170 crore) engineering company simultaneously wants to exit from L&T Komatsu Ltd, a 50:50 JV, and disband its business agreement with Swedish truck maker Scania AB. The management perceives these businesses to have lost their potential to become core to L&T, according to one of the three executives.
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