Tata Motors Ltd.signs share purchase agreement with Marcopolo SA

Tata Motors Ltd. has signed a share purchase agreement with Marcopolo SA where the company will purchase the balance 49 per cent shareholding from its joint venture (JV) partner Tata Marcopolo Motors Limited (TMML) for a cash consideration of Rs 99.96 crore. 

With this, TMML will become a wholly-owned subsidiary of Tata Motors after it purchases the 49 per cent shareholding of Marcopolo SA in the joint venture. Also, all technologies pertaining to existing bus body products manufactured will continue to vest with TMML.

Additionally, as part of the transition, Marcopolo SA will continue to license the Marcopolo trademarks to TMML for a minimum of three years with a non-compete provision in India for a corresponding period.

TMML is a 51:49 joint venture formed in 2006. It has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied by Tata Motors which markets them under the Starbus and Starbus Ultra brands.