BNamericas reported that Brazilian cast iron components foundry Tupy expects to close a deal to acquire Mexican foundries Cifunsa Diesel and Technocast for approximately USD 439 million by 2011 end.

A spokesperson from Tupy told BNamericas that to become effective, the deal will require the approval of the pertinent regulatory agencies.

The Mexican foundries are controlled by Grupo Industrial Saltillo. Technocast has US based heavy equipment manufacturer Caterpillar as a minority shareholder.

The plants are located in Coahuila state cities Saltillo and Ramos Arizpe, respectively, and produce cast iron blocks and cylinder heads used to manufacture automotive engines for passenger and commercial vehicles, agricultural and construction machinery, stationary engines and others.

Once the acquisitions are completed, Tupy will become the largest cast iron engine block and cylinder head manufacturer in the world. Tupy's net income in 2010 was BRL 154 million and net sales were BRL 1.87 billion.

The company has its headquarters in the city of Joinville, some 90 kilometers from Curitiba, in southern Brazil. It also has a plant in Mauá, in Sao Paulo state. Together the plants have capacity to produce 500,000 tonnes per annum.

(Sourced from www.bnamericas.com)