Gold & diamond jewelry manufacturer, Rajesh Exports Ltd said that it has acquired Valcambi, the world's largest gold refining company, in an all cash deal for USD 400 million.
"The company through it's wholly owned subsidiary in Singapore has fully acquired European Gold Refineries, the 100 per cent holding company of Valcambi in an all cash deal with a total investment of USD 400 Million," the company said in a filing to the Bombay Stock Exchange.
The deal will help it secure raw material supplies and will add to earnings per share, the company said.
Commenting on the development, Rajesh Exports, Chairman, Rajesh Mehta, said, "This is a historic moment for REL and for the global gold business. The coming together of REL and Valcambi would expand the global gold business and would prove very productive for the future global plans of REL group. We will seamlessly integrate Valcambi into REL group and would continue with the professional and globally acclaimed management of Valcambi."
He further said that the acquisition is also of national importance for India as India is the world's biggest consumer of gold, with annual demand hovering around 900 tonnes per year.
Meanwhile, shares of the company were trading at Rs 536.70 a piece, up 1.45 per cent from the previous close at 10:39 hours on BSE.