Auto components major Motherson Sumi Systems on Thursday said it will acquire Bombardier's UK rolling stock electrical component and systems business in a transaction valued at 10.87 million pounds (over Rs 100 crore).

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Pankaj Mittal, COO of Motherson Sumi Group, spoke to CNBC-TV18 about the deal and synergies.

“We believe that this business will be earnings per share (EPS) accretive from the very first year,” Mittal said on Friday.

“Bombardier Transportation, as part of this deal, is transferring their entire business of wire harness assemblies, cabinet assemblies and other electrical assemblies to us, so we will be the sole supplier to them in the coming years and this also opens up a new location for us in the United Kingdom, where we were not there before, and in the future we are also free to supply to any other customer from this location,” Mittal added.

When asked about the Brexit worries, Mittal said, “We are supporting the customer in the UK and it is manufacturing in the UK also for supporting the UK requirements in-turn, so in a way it’s positive that in the rolling stock business the governments are the biggest buyer and they would also want the manufacturing to be in their own land. Therefore, in that sense we also have an opportunity to, over a period of time, look at other customers in the UK and support them from this facility.”