Mahindra CIE Automotive board gives nod to merge subsidiary Bill Forge with itself
Bill Forge is a wholly owned subsidiary of Mahindra CIE Automotive, no shares of the company will be issued as consideration for the amalgamation
New Delhi: Mahindra CIE Automotive Tuesday said its board has approved merger between the company and Bill Forge.
The board of directors of the company at its meeting held on 25 September 2018, approved the scheme of merger between Bill Forge Private Ltd (Bill Forge) and Mahindra CIE Automotive Ltd (MCIE) and their respective shareholders (the scheme), it said in a regulatory filing.
"The scheme seeks to amalgamate and consolidate the business of Bill Forge with that of the company," it said.
The merger, it said would result in increased operational efficiencies, bring economies of scale and result in synergetic integration of businesses presently being carried on by MCIE and Bill Forge.
Since, Bill Forge is a wholly owned subsidiary of the company, no shares of the company will be issued as consideration for the amalgamation, MCIE said.
The scheme of amalgamation, the company said, it subject to requisite statutory and regulatory approvals.
MCIE said the acquisition of the entire Bill Forge will help accelerate its market position and strategy for delivering innovative solutions in the Indian market.
Bill Forge is a supplier to a number of domestic and global two-wheeler and passenger car OEMs (original equipment manufacturer) and tier I auto component companies.
It manufactures a variety of cold, warm, hot forged and machined components primarily for steering, transmission and wheel-related assemblies.