Tata Motors will purchase the 49% shareholding for Rs. 99.96 crore.
Marcopolo S.A. has decided to exit from the joint venture (JV) with Tata Motors and has offered to sell its 49% shareholding in the JV to the company.
According to a statement released by Tata Motors, the company will be purchasing the 49% shareholding in Tata Marcopolo Motors Limited (TMML) for a cash consideration of Rs. 99.96 crore, to become the wholly owned subsidiary of the company.
Tata Motors has stated that all technologies pertaining to existing bus body products manufactured will continue to vest with TMML. 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.
Marcopolo S.A. to exit bus joint venture with Tata Motors Updated Dec 17, 2020 | 11:30 IST
Tata Motors and Marcopolo S.A., among the largest bus and coach manufacturers in the world, formed this 51:49 joint venture in 2006. Marcopolo S.A. to exit bus joint venture with Tata Motors
2020 has taken its latest victim in the automotive industry the Tata Marcopolo Motors Limited joint venture. Yep, Tata Motors has announced that it will now buy out Marcopolo s share in this joint venture that builds and sells buses under the umbrella of the Starbus and Starbus Ultra brands. So, what s going to happen is that Tata Motors will buy out Marcopolo S.A. s stake in the JV for ₹99.96 crore. Once the purchase is executed, Tata Motors will become the sole owner of the Tata Marcopolo Motors Limited joint venture. Now, if you are wondering the reason behind the decision Tata Motors explained that it is a result of Marcopolo S.A. s new business strategy.