Tata Motors on Tuesday said it has completed the acquisition of its partner Marcopolo's stake in their bus body manufacturing joint venture Tata Marcopolo Motors Ltd.
In December 2020, Tata Motors and Marcopolo had entered into an agreement, under which the homegrown automaker agreed to purchase 49 per cent shareholding of its Brazilian partner for Rs 99.96 crore in the joint venture. The 51:49 JV was formed in 2006.
The company has completed the procedural requirements under the share purchase agreement for acquiring the entire shareholding held by Marcopolo SA in Tata Marcopolo Motors Ltd (TMML), Tata Motors said in a regulatory filing.
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Consequently, TMML has become a wholly-owned subsidiary of the company from August 29, 2022, it added.
The JV had manufacturing facilities in Dharwad and Lucknow for building bus bodies on chassis supplied by Tata Motors and marketed under the 'Starbus' and 'Starbus Ultra' bus brands.
However, Marcopolo decided to exit from the JV under its refreshed business strategy and offered to sell its 49 per cent shareholding in the JV to Tata Motors but agreed to 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.
