Motherson Sumi halts falling spree with acquisition news
Auto parts and equipment maker Motherson Sumi has completed acquisition of Reydel Automotive Holdings B.V. and Reydel Automotive Management B.V. This was done through Samvardhan Motherson Automotive Systems Group B.V., Netherlands, a step-down subsidiary of the company. The stock of Motherson Sumi halted its three-day losing streak and bounced back more than 1.5 per cent on Friday.
Reydel is a manufacturer of interior components and modules for the global automakers. The aforesaid acquisition is the 21st one by Samvardhan Motherson Group that the acquisition is expected to boost Motherson’s offerings in the interior segment.
The stock of Motherson Sumi had hit an all-time high at 395 levels on December 19 and 20 and thereby witnessed a fall of near to 300 levels. The stock attempted a bounce back but resisted at 61.8 per cent retracement of the prior downward rally from 395 to 301 and retreated yet again to hit below 301 and 274.
Recently, after a bounce from 274, the stock witnessed resistance breakouts at 308 followed by 316 and 325. It witnessed a sharp pullback with three-day correction up to 50 per cent retracement of the upward rally from 280 to 327. On Friday, the stock has seen a bounce, though not significant.