Core Viewpoint - Tega Industries Ltd. is set to acquire control of Molycop, a mining equipment manufacturer, for an enterprise valuation of $1.5 billion, marking the largest US deal by an Indian company in three years [1][3]. Group 1: Acquisition Details - Tega Industries will hold a 77% stake in Molycop, with the remaining ownership held by Apollo Global Management Inc. [2] - The acquisition is significant, being almost equivalent to Tega's market value, and follows a previous major deal by Biocon Ltd. in February 2022 [3]. - The upfront payment for the acquisition will be in cash, totaling $361 million, which includes $248 million in equity and $113 million in debt [4]. Group 2: Financial Implications - Tega plans to raise funds through equity sales, which raises concerns about potential equity dilution [5]. - A conditional payment of $120 million will be made within 45 months, sourced from Molycop's internal funds [5]. - Molycop carries approximately $1 billion in debt, and Tega aims to reduce this leverage post-transaction [6]. Group 3: Strategic Impact - The acquisition will enhance Tega's global presence, with a combined operation across 26 manufacturing sites worldwide [6]. - The integration of Molycop, a company with over 100 years of history and operations in more than 40 countries, presents execution risks [7].