Ashok Leyland has said it will acquire 26 per cent stake in UK-based bus manufacturer Optare for USD 7.5 million (about Rs 35 crore) as part of its strategy to expand into new markets.

"The deal is expected to further benefit Ashok Leyland in its endeavour to accelerate technology, new product development and address new markets," the company said in a statement.

As a result of the acquisition, ALL will get access to Optare's technology, including a modern range of mid-size and full-size city buses, which can be targeted at international global markets, the company’s statement added. "This strategic alliance is a critical part of our 'Global Bus' programme, which is under development," Ashok Leyland Managing Director R Seshasayee said. Under the agreement, Ashok Leyland will nominate two nominees on the board of Optare, it said.

Optare, in turn, will seek Optare, in turn, will seek to improve its competitiveness in the UK and its export markets through access to Ashok Leyland's lower-cost supply chain, collaboration in new product development and improved management of working capital