Mumbai (Maharashtra) : Tata Motors said on Thursday it will purchase the balance 49 per cent shareholding in Tata Marcopolo Motors Ltd (TMML) for a cash consideration of Rs 99.96 crore.
TMML is a 51:49 joint venture formed in 2006 between the Tata Motors and Marcopolo SA, one of the largest bus and coach manufacturers globally.
The joint venture has manufacturing facilities in Dharwad in Karnataka and Lucknow in Uttar Pradesh where it builds bus bodies on chassis supplied and marketed by Tata Motors under the ‘Starbus’ and ‘Starbus Ultra’ bus brands.
As a consequence of its refreshed business strategy, Marcopolo SA has decided to exit from the joint venture and offered to sell its 49 per cent shareholding to Tata Motors. The acquisition is likely to complete by February-end.
Post the purchase, TMML will become a wholly-owned subsidiary of Tata Motors. All technologies pertaining to existing bus body products manufactured will continue to vest with TMML.
As part of the transition, Marcopolo SA will continue to license the ‘Marcopolo’ trademarks to TMML for at least three years with a non-compete provision in India for a corresponding period.
Tata Motors said the transaction will not result in any impact on TMML’s operations or the continued sales and service of the company’s customers.
“Marcopolo SA and TMML intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services,” it said. (ANI)