Anchor Electricals is in advanced talks with National Matsushita, part of the $69 bn-Matsushita Group of Japan. Anchor is the Indian electrical market leader in switches and accessories. National is the worldwide leader in the development and manufacture of electronic products for consumer, business and industrial needs. Anchor’s senior management is in negotiations with National to divest a 49% stake in Anchor for Rs. 2000 crores.
Matsushita is negotiating for a controlling stake, which the promoters of Anchor, the Shah family, are unwilling to give. The Japanese major is looking at buying a 70% stake in the company, giving them direct access to the Indian electricals market. Anchor enjoys a market share of close to 60% in India. Prior to talks with National Matsushita, Anchor was also speaking to Schneider Electric India and Siemens. However, the talks fell through due to valuation and management control differences.
The Anchor acquisition would give National Matsushita a strong foothold in the overall switches, sockets and miniature circuit breakers (MCB) industry pegged at Rs. 2000 crores. In the Rs. 1000 crore-switches-and-sockets market, Anchor Electricals is the market leader with 30% share followed by MK Electric and Havell’s with 20% share each.
Read The Economic Times article.
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