Brazil’s Marcopolo S.A., one of the world’s largest bus and coach manufacturers, has agreed to sell its 49% shareholding in Tata Marcopolo Motors Ltd. (TMML) to joint venture partner Tata Motors Ltd. for ₹99.96 crore in cash.
“After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A. has decided to exit from the JV and offered to sell its 49% shareholding in the JV to the company,” Tata Motors said in a statement.
Post the purchase, TMML will become a wholly owned subsidiary of Tata Motors and all technologies pertaining to existing bus body products will continue to vest with TMML.
As part of the transition, Marcopolo 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, Tata Motors said.
“The transaction will not result in any impact on TMML’s operations or the continued sales and service of Tata Motors’ customers. The company, Marcopolo S.A. and TMML intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services,” it added.
TMML’s plants in Dharwad and Lucknow build bus bodies on chassis supplied by Tata Motors.
