CEAT Shares Rise More Than 3% as Michelin Completes CAMSO Brand Acquisition

Mumbai, 2 September 2025: CEAT Limited’s (NSE: CEATLTD, BSE: 500878) shares rose nearly 3 percent on Tuesday following confirmation of the completion of its acquisition of Michelin Group’s CAMSO brand Compact Construction Equipment business. The US$171 million deal is to strongly boost CEAT’s position in the world Off-Highway Tyres (OHT) market.

Stock Performance Surges ₹87.70 to ₹3,291 Amid Acquisition News

As of 11:42 a.m. on September 2, 2025, CEAT shares were trading at ₹3,291.00, up ₹87.70 or 2.74 percent for the day. The stock opened at ₹3,219.70 and moved between an intraday high of ₹3,336.40 and a low of ₹3,219.30. At the current level, CEAT commands a market capitalization of ₹13,230 crore, with a price-to-earnings ratio of 30.89 and a dividend yield of 0.91 percent.

$171 Million Deal Includes Acquisition of Two Key Sri Lankan Manufacturing Units

The deal includes the transfer of Michelin’s Compact Construction Equipment business under the CAMSO brand, along with two primary manufacturing facilities in Sri Lanka — Midigama factory and Kotugoda’s Casting Product unit. CEAT will also acquire full proprietary rights to the CAMSO brand worldwide after the completion of a three-year licensing term. The deal also secures 1,483 Sri Lankan jobs to ensure continuity of operations and reinforce CEAT’s manufacturing presence in the country.

This deal also opens up CEAT’s access to over 40 international original equipment manufacturers (OEMs) and high-end distributors. Michelin, on its part, will be exiting the compact line bias tyres and construction tracks segment, enabling CEAT to integrate the CAMSO portfolio into its growing OHT operations.

CAMSO Acquisition Strengthens CEAT’s Footprint in Europe, North America, and Asia

The integration of CAMSO’s business and brand will likely expand CEAT’s presence in Europe and North America and reinforce its position in Asia. The acquisition is aligned with CEAT’s long-term vision of emerging as a leading global player in the Off-Highway mobility sector. As it leverages increased OEM partnerships and international distribution networks, CEAT is well-poised to consolidate its portfolio beyond passenger and commercial vehicle tyres and ramp up growth in the premium OHT segment.

Takeover Sparks Stock Rally on Diversification and Premium Segment Prospects

For investors, the takeover is seen as a game-changer that brings scale, brand value, and global reach to CEAT’s OHT business. The rally in the stock is an expression of hope for diversification into higher-margin tyre segments and faith in the ability of the company to absorb the new business seamlessly while maintaining long-term growth momentum.

Leadership Confident of Seamless Transition and Sustainable Growth

Arnab Banerjee, MD & CEO, CEAT Limited, stated:

“The integration of compact construction equipment business and the acquisition of the CAMSO brand is a pivotal step in advancing CEAT’s long-term vision of becoming a significant player in Off-Highway mobility. We are confident that our enhanced strengths in products, capabilities, and markets will enable us to enter new geographies, expand our portfolio, and drive sustainable growth in the years ahead.”

Amit Tolani, Chief Executive, CEAT Specialty, added:

“Our immediate focus is on seamless transition, ensuring customer satisfaction and further strengthening our operations in Sri Lanka.”

With CEAT͏ complet͏ing the $171 m͏illion ac͏quisiti͏o͏n of Michelin’s CAMSO br͏and and͏ ͏expanding͏ access͏ to over ͏4͏0 internat͏ion͏al OE͏Ms, the ͏company is͏ ͏poised to enhance its͏ global Off-Highway T͏y͏r͏e p͏resence. Inves͏tors a͏re opt͏imistic͏ as the ͏integration͏ s͏trengthens C͏EAT’s͏ footpr͏int͏ in Asia, Europe, and North͏ America, p͏osition͏ing it for long-term ͏growth and higher-͏ma͏rgin opport͏unities in the pr͏emium ͏OHT se͏gment͏.

REF: https://nsearchives.nseindia.com/corporate/CEATLTD_01092025185106_CombinedSEIntimationClosingAnnouncementSep12025.pdf

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