Tata Motors to acquire JV from Marcopolo S.A.

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. is one of the largest bus and coach manufacturers in the world. The 51:49 JV with Tata Motors was formed in 2006. TMML has manufacturing facilities in Dharwad and Lucknow, where bus bodies under the Starbus and Starbus Ultra brands are built.