Tata Motors Limited to acquire remaining stake in bus-making joint venture with Marcopolo SA

Indian automobile company Tata Motors Limited on 17 December 2020 announced that the company has signed a share purchase agreement where the company will purchase the balance 49 percent shareholding from the joint venture (JV) partner, Marcopolo SA in Tata Marcopolo Motors Limited (TMML) for a cash consideration of Rs 99.96 crore. TMML will become a wholly-owned subsidiary of Tata Motors after it purchases the 49 percent shareholding of Marcopolo SA in the joint venture. Also, all technologies pertaining to existing bus body products manufactured will continue to vest with TMML. Additionally, as part of the transition, Marcopolo SA will 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. TMML is a 51:49 joint venture formed in 2006. TMML has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied by Tata Motors, which markets them under the “Starbus” and “Starbus Ultra” brands. Tata Motors Limited was established in 1945 and is a $35 billion organization. It has 78,906 employees working for it in various sectors with over 8,400 sales and service points. It has also sold 961,463 vehicles to date. This data is for Tata motors Consolidated for the financial year (FY) 2019-2020.