Mumbai: Engineering and construction company Larsen & Toubro Ltd. said on Friday it will acquire the 50% stake in L&T-Komatsu Ltd. (LTK) held by Komatsu Asia & Pacific Pte Ltd., a wholly-owned subsidiary of Komatsu Ltd. (Komatsu), Japan.
LTK will become a wholly owned subsidiary of L&T, the company said in a late night statement.
“LTK will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators,” it said.
L&T will continue to be responsible for marketing, sales and product support in India for the Komatsu range of products.
The company did not disclose the value of the transaction.
“Komatsu plans to consolidate its manufacturing operations under the parent brand, in line with its global strategy. This transaction is part of that process,” said a senior L&T executive, requesting anonymity.