Infrastructure and engineering major Larsen & Toubro (L&T) has divested its entire stake in its wholly-owned subsidiary, L&T Cutting Tools, to IMC International Metalworking Companies BV, owned by US-based Berkshire Hathaway Inc, the company said in a filing with stock exchanges.
The sale is expected to be closed within the next 90 days, it said. The deal will bring L&T ₹174 crore and could be considered as a part of the group’s broader strategy to divest non-core businesses and assets adopted several years back.
L&T Cutting Tools is a part of L&T’s EWAC Alloys business and has a manufacturing facility in Ankleshwar, Gujarat, producing a range of products.
Its total revenues during the last financial year stood at ₹169.5 crore and constituted around 0.15 per cent of L&T’s consolidated revenue.