City-based Tega Industries has completed the $1.4bn acquisition of Molycop, a global supplier of mining consumables, in one of the largest cross-border takeovers undertaken by a company from Bengal, transforming the manufacturer into a mining technology and services group with annual revenues of about $1.8 billion (₹17,000 crore).
The deal, executed in partnership with private equity investor Apollo Funds, gives Tega an 84.2 per cent stake in Omaha, Nebraska-based Molycop, while Apollo will hold the remaining 15.8 per cent.
The acquisition marks a significant milestone for the Mehul Mohanka-led company as it celebrates its 50th year, substantially expanding its international footprint and positioning it among the largest industrial groups based in Calcutta.
Tega also expects the transaction, announced in September 2025, to generate employment in Bengal. The company plans to establish a global capabilities centre in Calcutta to support Molycop’s international operations.
“We plan to set up a global capabilities centre to support Molycop’s international operations in Calcutta with a headcount of 200, with the potential to ramp up further in future,” Mohanka told The Telegraph from Omaha on Monday.
While Tega will retain its headquarters in Calcutta, Molycop’s corporate headquarters will be relocated from Omaha to Dubai as part of the integration process.
The acquisition has been completed against a backdrop of heightened geopolitical tensions and trade uncertainties. Mohanka, however, argued that Molycop’s global manufacturing footprint would help shield the business from disruption.
“Uncertainties, geopolitical or tariff-related, would work well for a company like Molycop, which has manufacturing facilities across key mining regions globally, as customers would increasingly prefer local producers to ensure uninterrupted supplies of grinding media,” he said.
To insulate Tega’s balance sheet from acquisition-related risks, most of the borrowing raised to fund the transaction remains on Molycop’s books. The structure resembles a leveraged buyout, with debt housed at the acquired company and carrying no recourse to Tega.
For its share of the equity commitment, Tega raised ₹3,623 crore through a combination of equity, debt and internal accruals. Apart from shares of equity, Apollo also injected $270 million of preference capital and, as a result, the debt on the books of Molycop stands at $700 million.