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Ashok Leyland buys out Nissan's stake in 3 JVs for Rs 3

IANS  |  Chennai 

Commercial vehicle major on Friday said it has bought out Japanese Nissan Motor Company's stake in three joint ventures for a consolidated consideration of a mere Rs 3.

In a statement issued here said it has completed the acquisition of Nissan's stake in each of the three joint ventures (JVs) -- Nissan-Vehicles, Nissan-Powertrain and Nissan-Technologies -- for a consolidated consideration of Rs 3.

In September 2016, and Nissan announced that they had reached a new arrangement in which Nissan would transfer its ownership in the three JVs to subject to statutory approvals.

"With all necessary statutory approvals now in place the acquisition was completed for a consolidated consideration of Rs.3/- paid by for all the shares of the three JVs," said in a statement.

"While we have acquired 100 per cent ownership of the JVs, we will continue to be associated with Nissan for the technology of the existing Dost, Partner, and Mitr models. These are very important products for us and hold tremendous potential both within and outside India," Vinod K. Dasari, Chief Executive Officer and Managing Director, was quoted as saying in the statement.

Under the new arrangement, will continue to build, under a licensing agreement -- Dost, Mitr, and Partner light commercial vehicles -- which are based on Nissan's design, engineering and technology.

Servicing and parts availability for customers will be ensured by a technical support arrangement.

In addition, the two companies have agreed to continue a deal to procure made-in-India parts for Nissan.

The first joint venture was for the manufacture of LCVs under -- Nissan Vehicles -- in which owns 51 per cent share, while Nissan owns the rest.

The other two joint ventures are Nissan Powertrain, the powertrain manufacturing company, owned 51 per cent by Nissan and 49 per cent by Ashok Leyland; and Nissan Technologies, the technology development company, owned 50:50 by the two partners.

However, the statement did not disclose the total number of people employed in these three companies.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 25 2016. 18:30 IST