Tata Motors has announced entering into a share purchase agreement with Marcopolo S.A. to buy the remaining 49 per cent shareholding in their Joint Venture (JV) Tata Marcopolo Motors Limited (TMML). The homegrown carmaker has said that it will procure the remaining shares for a cash consideration of ₹ 99.96 crore, post which, TMML will become a wholly-owned subsidiary of Tata Motors. The two companies entered this 51:49 JV in 2006 to form one of the largest bus and coach manufacturers globally, however, the Brazilian bus and coach manufacturer has now decided to exit from the JV.
In its official statement, Tata Motors said, “All technologies pertaining to existing bus body products manufactured will continue to vest with TMML. In addition, as part of the transition, 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. The transaction will not result in any impact on TMML’s operations or the continued sales and service of the Company’s customers”