Tega Industries Limited has successfully completed the acquisition of the Molycop group. The transaction, finalized on June 1, 2026, marks a significant expansion for Tega into the global grinding media market. The acquisition, valued at approximately USD 1.5 billion enterprise valuation, was financed through a combination of equity and contingent payments. This strategic move is expected to enhance Tega’s product portfolio and global reach in the mining industry.
Tega Industries Finalizes Molycop Acquisition
Tega Industries Limited announced today, June 1, 2026, the successful completion of its acquisition of the Molycop group. This strategic move, previously disclosed through a series of communications beginning September 10, 2025, signifies a major milestone for Tega, significantly expanding its presence and capabilities in the global mining consumables market.
Deal Structure and Financing
The acquisition was based on an enterprise valuation of approximately USD 1.5 billion, determined on a “locked box” approach using Molycop’s audited balance sheet as of June 30, 2025. The purchase price payable at closing, after adjustments, was set at USD 393 million. An additional USD 18 million has been placed in escrow. Furthermore, Sellers are eligible for a contingent payment of up to USD 120 million, payable within 45 months post-acquisition, subject to Molycop achieving specified performance conditions.
Transaction Details
As part of the transaction, Tega MC Investment Pte. Ltd. (Tega HoldCo), a wholly owned subsidiary, acquired approximately 84.2% of the ordinary shares in Tega MC JV Holdings Pte. Ltd. (SG Company) for USD 394,295,423. Apollo HoldCo acquired the remaining 15.8% for USD 74,107,477. Apollo HoldCo also invested USD 270,000,000 in redeemable preference shares of a Tega MC subsidiary. Subsequently, the SG Company, through its subsidiaries, acquired the equity interests of the Molycop Companies.
Strategic Rationale and Future Outlook
The Molycop group is a leading global supplier of grinding media to the mining industry, with extensive manufacturing and sales networks across over 40 countries. This acquisition integrates Molycop’s complementary products into Tega’s portfolio, positioning the company as a leading designer and manufacturer of ‘critical-to-operate’ consumables for the mining, mineral processing, and material handling industries. Tega anticipates this will enable them to offer a more comprehensive basket of products and solutions, covering the entire value chain from primary beneficiation to extractive metallurgy, and enhance their integrated supply chain and R&D capabilities.
Details of Molycop Companies
Annexure B provides a comprehensive list of 43 Molycop Companies and their respective shareholding percentages acquired. The Molycop group was incorporated in 1918 and has a significant global presence. This acquisition is not a related party transaction. The transaction was subject to customary conditions precedent, including regulatory and anti-trust approvals, all of which have been successfully met.
Source: BSE
