Germany's leading rail-tech supplier, Knorr-Bremse Group, is reportedly in the process of acquiring Escorts Kubota's railway business, according to insiders familiar with the situation as reported by a media house. The official announcement of this deal is expected in the coming days.

Sources indicate that Escorts Kubota's railway business is estimated to be valued at over Rs 4,000 crore. Knorr-Bremse specialises in manufacturing braking and safety-related sub-systems for both railways and commercial vehicles, and both Knorr-Bremse and Escorts Kubota are significant suppliers to the Indian Railways.

It's noteworthy that Kubota Corporation, the current promoter entity of the tractor manufacturer, does not have a significant presence in the railways sector. As of the 2023 financial year, Escorts Kubota's railway business constituted 10% of its overall revenue, marking a threefold increase from its 3.1% share a decade ago around the 2014 financial year.