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market | IST

Eveready shares hit 5% lower circuit after reports of Duracell's plans to buy company assets

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Shares of Eveready Industries hit 5 percent lower circuit on Monday on media reports that Duracell Inc, owned by Warren Buffett’s Berkshire Hathaway is set to acquire Eveready Industries’ battery and flashlight business in a slump sale for Rs 1,600-1,700 crore.

Shares of Eveready Industries hit 5 percent lower circuit on Monday on media reports that Duracell Inc, owned by Warren Buffett’s Berkshire Hathaway is set to acquire Eveready Industries’ battery and flashlight business in a slump sale for Rs 1,600-1,700 crore.
The stock fell as much as 5 percent to hit its lower circuit of Rs 70.50 per share on BSE. In comparison, the BSE Sensex was trading 0.37 percent or 136 points lower at 36,845. The stock has lost nearly 70 percent of its value in the last one year and declined over 60 percent in 2019.
According to a report by The Economic Times, the deal includes manufacturing plants, distribution networks, and the brand name. The all-cash deal will be beneficial to Eveready in wiping out its debt, the paper quoted a person aware of the development as saying. Meanwhile, the deal is in the final stages of negotiation and will be announced soon.
The report added that the transaction talks between the Khaitan family and Duracell as well as Energizer (US-based), which owns the Eveready brand in the United States and China have been going on for months.
The report added: "As per the agreement, both Duracell and the Williamson Magor Group
Meanwhile, Williamson Magor hit its 10 percent upper circuit at Rs 17.65 post the developments.
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