India’s Rama Steel Tubes has approved the acquisition of UAE-based Automech Group Holding for AED 296 mln (USD 80 mln), as part of a strategy to expand its footprint and operations in the UAE. The transaction will be executed jointly with its subsidiary, RST International Trading FZE, according to a stock exchange filing.
Under the agreement, RST International Trading FZE will acquire a 78.38pct stake for AED 232 mln (USD 63 mln), while Rama Steel Tubes will purchase the remaining 21.62pct stake for AED 64 mln (USD 17 mln) through the issuance of new equity shares.
The acquisition is aimed at strengthening the group’s presence in the UAE across multiple industrial sectors, supporting diversification, operational synergies, and long-term growth. Automech Group is active in steel fabrication, construction and installation, precision engineering, contracting services, dewatering and land drainage, marine engine services, energy, and infrastructure.
The transaction is expected to be completed within six months, subject to customary approvals.
1 USD / 3.67 AED
