The remaining ownership in Tata Marcopolo Motors is acquired by Tata Motors
Tata Motors and Marcopolo had agreed to buy 49% of the Italian automaker's shares under a contract they had signed in December 2020.
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On Tuesday, Tata Motors said that it has finished buying out Marcopolo's share of their joint venture, Tata Marcopolo Motors Ltd., which produces bus bodies.
According to a contract signed by Tata Motors and Marcopolo in December 2020, the domestic manufacturer will pay Rs 99.96 crore to acquire the Brazilian partner's 49% ownership in the joint venture. In 2006, the 51:49 JV was established.
According to a regulatory filing by Tata Motors, the business has fulfilled the formal conditions under the share purchase agreement for acquiring the full shareholding held by Marcopolo SA in Tata Marcopolo Motors Ltd (TMML). As a result, starting on August 29, 2022, TMML will be a wholly-owned subsidiary of the business, it continued.
The JV had factories in Dharwad and Lucknow where bus bodies were produced and sold under the Starbus and Starbus Ultra bus brands on Tata Motors-supplied chassis. To Tata Motors, Marcopolo proposed to divest its 49% stake in the JV as part of its updated business strategy, but instead agreed to continue licencing the "Marcopolo" trademarks to TMML for at least another three years with a comparable non-compete clause in India.
