For consideration of Rs 725.7 cr
Tata Motors announced that its subsidiary, Tata Passenger Electric Mobility (TPEML) and Ford India (FIPL) have executed an unit transfer agreement for the acquisition of FIPL's manufacturing plant situated at Sanand, Gujarat which includes: (i) entire land & buildings; (ii) vehicle manufacturing plant along with machinery and equipment situated therein; and (iii) transfer of all eligible employees of FIPL's vehicle manufacturing operations at Sanand for a total consideration of Rs 725.7 crore.FIPL will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from TPEML on mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of FIPL's powertrain manufacturing plant in the event of FIPL's cessation of such operations.
The completion of the transaction will be subject to the receipt of relevant approvals of the government authorities and fulfilment of customary condition precedents. Government of Gujarat, TPEML and FIPL have already executed a tripartite MoU on 30 May 2022 to support all relevant approvals for the above transaction.
TPEML would make the necessary investments to reconfigure the plant to adapt to Tata Motors' existing and future vehicle platforms. The unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles at Sanand, which should help in a smooth transition.
Powered by Capital Market - Live News