Schaeffler India Ltd. will merge its German parent’s two wholly owned subsidiaries with itself as the maker of industrial and automotive bearings consolidates operations in Asia’s third largest economy.

INA Bearings India Pvt. Ltd. and LuK India Pvt. Ltd. will combine with Schaeffler India, formerly FAG Bearings India, according to a stock exchange filing. The transaction, cleared by the board, will be completed in 12 months.

Schaeffler India will issue 10 shares for every 65 held by investors of INA India and for every 35 held by shareholders of LuK India. In all, it will issue 1.5 crore new shares, taking the total outstanding equity shares to 3.1 crore. Schaeffler AG’s stake in the listed Indian subsidiary will increase from 51.3 percent to a little over 74 percent after the deal.

The three entities, which on an ongoing basis spend 20-25 million euros a year as growth capital, will over the next five years double its investment, said Klaus Rosenfeld, chief executive officer at 13.3-billion-euro Schaeffler AG. The company may even look at acquisitions in India, said Rosenfeld.

The total net worth of the merged entity stood at just over Rs 2,100 crore as on June 30. The three entities, on a proforma basis, had revenues of Rs 3,570 crore in 2016, Schaeffler India said in a press release.

Nearly three-quarters of Schaeffler India’s turnover comes from its industrial vertical and the rest from automotive companies, said managing director Dharmesh Arora. Post the merger, the share will become more or less equal, he said.

The merger is expected to be concluded in 12 months subject to shareholder and regulatory approvals, he said.