Tata Motors has completed the acquisition of its partner Marcopolo's stake in their bus body manufacturing joint venture Tata Marcopolo Motors, the company informed in a regulatory filing on Tuesday.
In December 2020, Tata Motors and Marcopolo had entered into an agreement, under which the homegrown automaker had agreed to purchase 49 per cent shareholding of its Brazilian partner for Rs 99.96 crore in the joint venture. The 51:49 JV was formed in 2006.
The JV has manufacturing facilities in Dharwad and Lucknow for building bus bodies on chassis supplied by Tata Motors and marketed under the 'Starbus' and 'Starbus Ultra' bus brands. However, Marcopolo decided to exit from the JV under its refreshed business strategy and offered to sell its 49 per cent shareholding in the JV to Tata Motors but agreed to continue to license the 'Marcopolo' trademarks to TMM for a minimum of three years with a non-compete provision in India for a corresponding period. Consequently, TMML has become a wholly-owned subsidiary of the company from August 29, 2022, it added.