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CEAT Share Price:  Shares of tyre maker CEAT rose by more than 12 per cent on Monday after RPG Group said the company had entered into a definitive agreement with Michelin to acquire the Camso brand of off-highway tyres (OHT) and track business for approximately $225 million (Rs 1,905 crore).

Shares of the company rose 9.64 per cent to Rs 3,390.15 on the BSE. CEAT shares rose 12.10 per cent to hit a 52-week high of Rs 3,466.40 in intraday trade. It rose 10.77 per cent to Rs 3,429.05 on the NSE. It later touched a 52-week high of Rs 3,469, up 12.06 per cent on the exchange. CEAT's market capitalization rose by Rs 151.41 crore to Rs 1,402.16 crore on the BSE.

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The 30-share BSE Sensex was trading 14.45 points, or 0.02 per cent, higher at 81,723.57. The NSE Nifty, however, fell 6.15 points, or 0.02 per cent, to 24,671.65. On Friday, SEAT said it had entered into a definitive agreement with Michelin to acquire the Camso brand of off-highway tyres (OHT) and track business for approximately $225 million (Rs 1,905 crore).

The company said the acquisition was significant for CEAT as it aimed to become a leading global player in the high-margin OHT segment, as it would give the company access to a global customer base including 40 international OEMs and premium international OHT distributors.

Camso is a premium brand in construction equipment tyres and tracks, with a strong equity and market position in the EU and North American aftermarket and OE segments.

"The track segment is growing faster and (also) has a larger premium play with the customers yet to figure out the right applications of tracks in construction and mining, which means there is a lot of scope for higher penetration in the track segment. So, between the two, tyres and tracks, the latter is more attractive, where CEAT will focus on growth," CEAT Managing Director and CEO Arnab Banerjee told PTI in an interaction.

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Disclaimer: This is only a piece of news about the recent development in the stock. Jagran does not advise investing, please do take expert opinion before investing.

(With Agencies Inputs)