Tata Motors is pressing hard on the accelerator to gain global mileage.
Tata Motors has acquired the remaining 79% stake in Spanish bus-maker Hispano Carrocera S.A, in which India’s largest vehicles maker already owns 21% along with controlling rights. The deal size was not disclosed.
Tata Motors bought 21% stake in Hispano way back in 2005 for a consideration of Rs 70 crore and the deal included equity, debt and technology licensing.
Tata Motors has now acquired the balance stake in Hispano by exercising the call option through an agreement with the other share-holder, Investalia S. A. Spain. “After the acquisition, the company will further strengthen the ongoing initiatives to improve operational efficiencies such as productivity improvement, cost reduction, and new product development, to improve market share of the company and enhance brand value,” said Tata Motors in statement.
This will be the first overseas M&A deal activity, although not strictly a fresh one, by Tata Motors after it acquired the iconic Jaguar Land Rover from Ford Motor Co for $2.5 billion last year.
The Tata Group firm recently raised $750 million by issuing global depositary receipts and convertible bonds. It had a consolidated debt of around $5.2 billion at end-June.