Tata Motors and Marcopolo S A have entered into a share purchase agreement wherein Tata Motors will purchase the balance 49 per cent shareholding in Tata Marcopolo Motors (TMML) for a cash consideration of Rs 99.96 crore.
Post the purchase, TMML will become a wholly-owned subsidiary of Tata Motors. All technologies pertaining to the existing bus body products manufactured will continue to vest with TMML.
In addition, as part of the transition, Marcopolo S A will continue to license the Marcopolo trademarks to TMML for a minimum of three 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 service of the company’s customers.
The authorised capital of TMML is Rs 170 crore, paid-up capital is Rs 170 crore. The turnover of the company was Rs 650.55 crore in FY20. The completion of the acquisition is expected to be by the end of February 2021.
Tata Marcopolo Motors is a 51:49 JV formed in 2006 between Tata Motors and Marcopolo S A, a bus and coach manufacturer.
The JV has manufacturing facilities in Dharwad in Karnataka and Lucknow in Uttar Pradesh where it builds bus bodies on chassis supplied by the company and marketed by the company under the Starbus and Starbus Ultra brands.