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10 June 2008 – In Milan last Thursday, a historic agreement was signed between Casti Group of Italy and India's Gammon India Limited, in which Gammon acquired a 75 per cent of Franco Tosi Meccanica SpA's capital stock.
The Casti Group retains a 24.9 per cent share of Franco Tosi, with Mr A. Rajan (chairman and managing director of Gammon) appointed chairman and Mr M. Scandellari (former CEO of Franco Tosi) as managing director.
The financial details of the agreement were not disclosed.
This agreement is the latest Italian deal struck by Gammon. Earlier this year, the Indian engineering major purchased a 50 per cent stake in an Italian engineering company, called Sadelmi.
With this latest agreement, it appears that Gammon has a clear plan to form a number of strategic alliances in the Italian power technology market.
Furthermore, speaking exclusively to Power Engineering International, a source close to the deal said that Gammon is currently in talks with an Italian boiler manufacturer, which is thought to be Ansaldo Caldaie.
If this transpires to be true and a deal is stuck, this will create a welcome large entrant into the over-stretched EPC market. According to our source, such an EPC would primarily supply the highly lucrative Indian power generation market.
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