New Delhi: Pune-based Force Motors on Thursday said it has agreed to acquire Pithampur-based manufacturing plant of German commercial vehicle maker MAN Trucks for an undisclosed amount.
In a regulatory filing, Force said its board has accepted a proposal from MAN Trucks India to sell and transfer certain assets including immovable and movable properties as also other intangible assets at its plant at Pithampur (Madhya Pradesh).
The arrangement is being recorded by binding agreements, it added.
The arrangement would be subject to receipt of necessary approvals and it is expected that the actual transfer of the facility may happen by October end, Force Motors said.
When contacted a MAN Trucks India spokesperson said: "MAN Trucks India and Force Motors Ltd have entered into an agreement wherein Force Motors will acquire the Pithampur manufacturing facility of MAN. The agreement also entails continued employment for all MAN members at Pithampur."
This development follows the announcement from MAN Trucks earlier in August to restructure its India operations, he added.
The company, however, declined to divulge any details of the agreement, including commercials, with Force Motors.
Earlier this month, the board of MAN Truck & Bus AG (MTB) had decided to restructure its India organisation as part of its global strategy to focus on premium segment markets.
As a result, MAN Trucks India would now become an R&D Centre for Excellence supporting global projects. The manufacturing, sales and exports of the CLA range of heavy commercial vehicles will be stopped after the existing customer orders are completed.
In July, the German company had announced putting on hold its ongoing projects, including new product launches and upgradation of models in the country to comply with the BS VI emission norms which come into effect from April 1, 2020.
Man Trucks manufactured various products at the Pithampur plant including tippers for off-road and construction, haulage for regular and over dimensional cargo, and special application trucks such as fire tenders, garbage compactors, concrete mixers, boom pumps, tip trailers and bulkers.
The company has sold over 25,000 trucks since it started India operations in 2006.
Force Motors shares were trading up 0.48 percent at Rs 2,567.90 on BSE.
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Updated Date: Aug 23, 2018 15:31:39 IST