Ashok Leyland, the flagship of the Hinduja Group, and Nissan Motor Co. Ltd. of Japan have formally ended their acrimony by announcing the completion of their partnership separation process in three joint ventures.
The process has ended with Ashok Leyland completing the acquisition of Nissan’s stake in the three joint ventures (JVs) formed between the two companies — Ashok Leyland Nissan-Vehicles Limited, Nissan-Ashok Leyland Powertrain Limited and Nissan-Ashok Leyland Technologies Limited.
Ashok Leyland has paid a consolidated consideration of Rs. 3 for all shares held by Nissan in these three JVs and has already obtained required statutory approvals.
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“It’s a win-win deal,’’ averred a Hinduja Group source.
Under the new arrangement, Ashok Leyland will continue to build, under a licensing agreement, Dost, Mitr and Partner light commercial vehicles, which are based on Nissan’s design, engineering and technology.