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Carborundum Universal to buy out 3M’s stake in joint venture company Wendt India

Carborundum Universal (CUMI), part of Chennai-based Murugappa Group, has reiterated its intention to buy out 3M’s stake in joint venture company Wendt India, which has proved to be a bone of contention between the two for over a year now.

“I think still nothing has moved since last time,” CUMI MD K Srinivasan said in the company’s fourth quarter conference call. “”They have not come back to the table for any discussion or negotiations. And the Company Law Board has not passed any orders. So still to that extent, it is sub-judice.”

He further said, “Our intent is very clear and specific to that we intend to buy them out.”

It was in 2010 that by virtue of its nearly $500 million purchase of Winterthur Technologies 3M became an equal joint venture partner of Carborundum in Wendt India. Both hold almost a 40% stake each. But Carborundum objected to the deal, saying it had the first right of refusal to buy out shares of Wendt GmbH (a German arm of Winterthur, which held the stake). Carborundum then moved the Company Law Board.

In its third quarter conference call, Srinivasan had said that 3M is expecting a market and market plus premium price which is not acceptable.
Source: Economic Times

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