Tata Motors acquires remaining 49% shares in JV with Marcopolo.
Tata Motors announced its share purchase agreement with Marcopolo S.A. and is looking forward to buy the remaining 49% shareholding in the Joint Venture (JV) Tata Marcopolo Motors Limited (TMML). Tata motors said that it will purchase the left over shares for cash consideration of 99.96 crore rupees which will result in TMML becoming a wholly owned subsidiary of Tata Motors. In the year 2006 the two corporate giants entered the JV to form one of the largest bus and coach manufacturers globally. This year the Brazilian bus manufacturer has taken a decision to exit from the Joint Venture.
“All technologies pertaining to existing bus body products manufactured will continue to vest with TMML. In addition, as part of transition, 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. The transaction will not result in any impact on TMML’s operations or the continued sales and services of the company’s customers” said Tata Motors in an official issued statement.
The JV Tata Marcopolo Motors Limited has launched multiple models in India like the Starbus and the Starbus Ultra bus brands since it was incorporated. The manufacturing facilities of the JV Company to build the bus bodies are situated in Dharwad and Lucknow.
The TTML and Marcopolo S.A. intend to maintain an open channel in the future for collaborations opportunities for the body designs of the bus and services for technical consultations added Tata Motors in its statement.
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