Boards of two Tata Motors finance companies to consider merger next week

Merger is part of Tata group plan to bring similar businesses under a single umbrella like Tata Steel's merger of seven subsidiaries with itself to consolidate its metals and mining businesses

As part of Tata group's plans to bring synergies across various group companies, the boards of Tata Motors Finance Solutions and Tata Motors Finance (TMFL) – both subsidiaries of Tata Motors Finance Holdings  – are meeting separately on October 3 to consider a plan to merge their lending operations. According to the plan, Tata Motors Finance Solutions will acquire TMFL’s non-banking finance business on a going concern basis, as per notices to debt investors.

Tata Motors Finance Holdings, a subsidiary of Tata Motors, holds 97 per cent stake in TMFL while the rest is held by Tata Motors Finance Solutions.