Tata Motors acquires remaining 49 per cent stake in Marcopolo SA

Tata Motors has signed an agreement to purchase the balance 49 per cent shareholding from its joint venture partner, Marcopolo SA in Tata Marcopolo Motors Ltd (TMML).

After the completion of the deal, TMML will become a wholly-owned subsidiary of Tata Motors. TMML is a JV formed in the year 2006 between Tata Motors and Marcopolo SA in a ratio of 51:49. Marcopolo SA is one of the largest bus and coach manufacturers globally. The JV has introduced many innovative designs and concepts, helping redefine the premium bus body segment in India. They have manufacturing facilities in Dharwad (Karnataka) and Lucknow (Uttar Pradesh), where it builds bus bodies and sell them under ‘Starbus’ and ‘Starbus Ultra’ bus brands.

Tata Motors and Marcopolo SA have entered into a share purchase agreement wherein, the company will purchase the remaining 49 per cent shareholding in TMML for a cash consideration of Rs 99.96 crore. All technologies pertaining to the existing bus body products manufactured will continue to vest with TMML. It will not have any impact on the operations of the company.

At the time of market closing, Tata Motors was trading at Rs 181.30, down by 0.68 per cent from Wednesday’s closing price.

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