Shares of CG Power Industrial Solutions Ltd were trading 2% higher on 12 March after the company announced securing approval from CFIUS.
CG Power and Industrial Solutions has secured regulatory approval from the Committee on Foreign Investment in the United States (CFIUS) for its acquisition of the Radio Frequency (RF) components business from Renesas Electronics America Inc. and its affiliated entities under Renesas Electronics Corporation. The approval, granted on 11 March 2025, follows a Definitive Agreement, including an Asset Purchase Agreement, between CG Power and Renesas.
Initially announced on 5 October 2024, the acquisition aims to strengthen CG Power’s presence in the RF components market.
The transaction will be executed through one or more subsidiaries to be established by the company. However, completion remains subject to certain conditions, including regulatory and statutory approvals, with CFIUS clearance being a key milestone.
This approval ensures compliance with US national security regulations concerning foreign investments in critical RF technology.
Separately, CG Power’s board is set to discuss the declaration of an interim dividend for the financial year 2024-25 during its upcoming meeting on 18 March. The company has yet to announce the record date for determining eligible shareholders.
Additionally, CG Power has secured a significant order from Kinet Railway Solutions Ltd for the supply and servicing of railway products. The contract includes propulsion kits with motors, transformers, and other components essential for producing 10 Vande Bharat train sets. The initial purchase order is valued between Rs 400 crore and Rs 450 crore. Alongside this, CG Power has entered into a long-term 35-year service agreement as part of the contract, ensuring continued support and maintenance.
At 3:30 pm, the shares of CG Power closed 0.62% lower at Rs 604.40 on NSE.
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