Tata Motors has announced that it is acquiring Marcopolo’s 49 percent shareholding in the Tata Marcopolo Motors (TMML) joint venture. The company is a 51:49 JV formed in 2006 between Tata and Marcopolo S.A., one of the largest bus and coach manufacturers globally.
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 percent shareholding in the JV to Tata Motors for a cash consideration of Rs 99.96 crore. The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied by Tata Motors and sold under the Starbus and Starbus Ultra bus brands.
After the purchase, TMML will become a wholly owned subsidiary of Tata Motors. 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 Tata Motors’ customers. Tata Motors, Marcopolo S.A. and TMML intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services