Tata Motors Limited to acquire remaining stake in bus-making joint venture with Marcopolo SA
TMML will become a wholly-owned subsidiary of Tata Motors after it purchases the 49 percent shareholding of Marcopolo S.A. in the joint venture.
Dec 22, 2020 17:17:26 IST
Indian automobile company Tata Motors Limited on 17 December 2020 announced that the company has signed a share purchase agreement where the company will purchase the balance 49 percent shareholding from the joint venture (JV) partner, Marcopolo SA in Tata Marcopolo Motors Limited (TMML) for a cash consideration of Rs 99.96 crore. TMML will become a wholly-owned subsidiary of Tata Motors after it purchases the 49 percent shareholding of Marcopolo SA in the joint venture. Also, all technologies pertaining to existing bus body products manufactured will continue to vest with TMML.
Marcopolo Exits From Tata Marcopolo JV - Tata Motors Buys Their Stake
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Tata and Marcopolo S.A. entered the 51:49 JV in 2006 and has launched models like the Starbus
Highlights
Tata Motors will buy them for a cash consideration of Rs. 99.96 crore
The two companies entered the JV in a 51:49 ratio in 2006
Tata Motors has announced entering into a share purchase agreement with Marcopolo S.A. to buy the remaining 49 per cent shareholding in their Joint Venture (JV) Tata Marcopolo Motors Limited (TMML). The homegrown carmaker has said that it will procure the remaining shares for a cash consideration of ₹ 99.96 crore, post which, TMML will become a wholly-owned subsidiary of Tata Motors. The two companies entered this 51:49 JV in 2006 to form one of the largest bus and coach manufacturers globally, however, the Brazilian bus and coach manufacturer has now decided to exit from the JV.
Tata Motors Ltd to acquire JV partner s stake in Tata Marcopolo Motors Limited
Posted On: 2020-12-17 00:14:58 (Time Zone: Arizona, USA)
Tata Marcopolo Motors Limited (TMML or JV), is a 51:49 JV formed in 2006 between the Company and Marcopolo S.A., one of the largest bus and coach manufacturers globally. Since its incorporation, the JV has introduced several innovative design and concepts helping redefine the premium bus body segment in India. The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied by the Company and marketed by the Company under the Starbus and Starbus Ultra bus brands. After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A has decided to exit from the JV and offered to sell its 49% shareholding in the JV to the Company.
Tata Motors will purchase the 49% shareholding for Rs. 99.96 crore.
Marcopolo S.A. has decided to exit from the joint venture (JV) with Tata Motors and has offered to sell its 49% shareholding in the JV to the company.
According to a statement released by Tata Motors, the company will be purchasing the 49% shareholding in Tata Marcopolo Motors Limited (TMML) for a cash consideration of Rs. 99.96 crore, to become the wholly owned subsidiary of the company.
Tata Motors has stated that all technologies pertaining to existing bus body products manufactured will continue to vest with TMML. Marcopolo S.A. will continue to license the “Marcopolo” trademarks to TMML for a minimum of 3 years with a non-compete provision in India for a corresponding period.
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