 "Bharat Forge to acquire axle maker AAM India for Rs 544.5 crore")
Forging company Bharat Forge on Thursday announced it has entered into a definitive agreement to acquire AAM India Manufacturing (AAMIMCPL) for a sum of Rs 544.5 crore. AAMIMCPL is a subsidiary of American Axle & Manufacturing Holdings (AAM), a US-based player in the automotive components sector.
This acquisition will enable Bharat Forge to expand its footprint in the axle manufacturing business for commercial vehicles across India. AAMIMCPL, established in 2008, is a manufacturer of axles for light, medium, and heavy-duty commercial trucks and passenger buses in India.
The acquisition brings AAMIMCPL's commercial vehicle axle businesses in Pune and Chennai, along with its Pune Engineering and Development Center, under the umbrella of Bharat Forge. The deal is subject to approval from the Competition Commission of India (CCI) and customary closing conditions. The transaction is expected to close upon receiving necessary regulatory approvals.
"We are delighted to welcome the AAMIMCPL team to the Bharat Forge family," said Amit Kalyani, Vice Chairman & Joint Managing Director of Bharat Forge. "Their technical expertise and established relationships with industry players will help us scale up the business over the medium to long term," he said.
Kalyani emphasised that this move aligns with Bharat Forge’s broader strategy to diversify its offerings in vehicle components and enter a new product segment.
For AAM, the sale of its Indian commercial vehicle axle business marks a strategic shift. David C Dauch, AAM Chairman and CEO, noted that the divestment will allow AAM to focus on electric, hybrid, and internal combustion engine (ICE) passenger vehicles globally. “This transaction provides financial flexibility and strengthens our focus on global ICE, hybrid, electric vehicle applications, pickup truck/SUV, and van applications," he said. Dauch assured that AAM would collaborate with Bharat Forge to ensure a smooth transition and continued supply to customers.