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Michelin To Acquire Camso For US$1.45 Bln

French tire maker Michelin (MGDDY.PK,MGDDF.PK) said that it will acquire Camso, a Canadian producer of rubber tracks for farm equipment and snowmobiles, for US$1.45 billion, corresponding to an enterprise value of US$1.7 billion.

As part of the transaction, Michelin has made the commitments: The off-the-road division's decision-making center will be based at Camso's headquarters in Magog. The managementteams, including the top executive, will work out of the Magog office; Headcount at Camso headquarters (300 employees, of which 100 in R&D) will remain stable, and existing R&D operations and production jobs in Quebec will be maintained.

The Michelin Group is confirming its strategic commitment to expanding in the tires and services domains while rolling out its strategy in materials and distribution. Michelin also indicates that, following a thorough analysis, the synergies expected to result from the Fenner acquisition have been revised upward, to £60 million from the initially announced £30 million.

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