Ashok Leyland gets CCI nod to buy Nissan’s stake in JVs
- Reliance Capital raises Rs2,500 crore from banks, financial institutions
- Myanmar operation against Rohingya has ‘hallmarks of ethnic cleansing’: US senators
- Xiaomi ties up with Hipad Technology to make power banks in India
- RINL’s IPO can be considered after it starts making profit: Steel minister
- Portea Medical raises $26m from Sabre, MEMG CDC, others
New Delhi: Ashok Leyland has received Competition Commission of India approval to buy its Japanese partner Nissan Motors Ltd’s stake in three joint ventures (JVs).
“CCI approves acquisition of sole control by Ashok Leyland in its JVs with Nissan Motors Ltd,” the antitrust regulator said in a tweet on Thursday.
The truck and bus manufacturer formally announced its plans to acquire all the shares of Nissan Motors in three of its JVs in September.
These joint ventures focus on technology development and manufacturing of powertrains and vehicles.
The deal was ironed out in January when Vinod Dasari, managing director of Ashok Leyland, and Philippe Guerin-Boutaud, corporate vice-president of Nissan’s global light commercial vehicle business met in Singapore to work out a system to allow Nissan to exit from the JVs.
The agreement will allow Ashok Leyland to continue manufacturing its flagship light commercial vehicles - Dost, Partner and Mitr (manufactured in Ashok Leyland’s Hosur plant)—with a 1% royalty payable to Nissan.
The two companies had entered into JV agreements in 2008 to make light goods carriers such as vans and small trucks.