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Construction : Deals | August 2012 | Source : Construction Update

L&T mulls to buy whole stake in Audco India

To strengthen its core valves business, Larsen and Toubro (L&T) is planning to acquire the entire stake of US-based Flowserve Corp in their 50:50 joint venture (JV) Audco India, according to an internal discussion held last week.

The company official sources said that L&T, India's biggest engineering and construction conglomerate, is reviewing its partnerships and will mostly seek majority shareholding in JVs going forward.

The $12.8 billion (Rs 71,170 crore) engineering company simultaneously wants to exit from L&T Komatsu , a 50:50 JV, and disband its business agreement with Swedish truck maker Scania AB. The management perceives these businesses to have lost their potential to become core to L&T, according the sources.

L&T is a big brand now and wants to strengthen its core businesses, valves being one of the most critical ones, the sources added.
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