Tata Motors to buy out Marcopolo's stake in bus venture for ₹100 crore
The company and Marcopolo S.A. have entered into a share purchase agreement where the company will purchase the balance 49 per cent shareholding in
Tata Motors said it has signed an agreement to purchase the balance 49 per cent shareholding from its joint venture partner.
Tata Marcopolo Motors is a 51:49 JV formed in 2006 between Tata Motors and Marcopolo S.A., one of the largest bus and coach manufacturers globally.
The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied Tata Motors.
These buses are marketed by the company under the "Starbus" and "Starbus Ultra" bus brands, Tata Motors added.
Tata Motors said, consequent to this transaction, TMML will become its wholly owned subsidiary.
Tata Motors said all technologies pertaining to 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, it added.
The company, Marcopolo S.A. and TMML intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services, Tata Motors said.
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