Bharat Forge to acquire AAM India Manufacturing for ₹544 Crore

18 Oct 2024 , 09:38 AM

Bharat Forge Ltd. stated on Thursday, October 17, that it has signed a definitive deal to buy AAM India Manufacturing Corporation Pvt. Ltd., a subsidiary of American Axle & Manufacturing Holdings.

The acquisition will be valued at ₹544.5 Crore, subject to closing adjustments.

AAM India Manufacturing Corporation manufactures axles for light, medium, and heavy-duty commercial trucks and passenger buses in India.

Following this acquisition, Bharat Forge would acquire AAM India’s commercial vehicle axle business in Pune and Chennai, as well as the Pune Engineering and Development Centre.

The transaction is subject to approval from the Competition Commission of India (CCI) and will only close when that and other usual closing conditions are met.

We look forward to relying on their technical experience and existing contacts with other industry participants to help grow up the firm in the medium to long term. Amit Kalyani, Bharat Forge’s Vice Chairman and Joint Managing Director, remarked.

AAM Chairman and CEO David Dauch stated that the strategic decision to sell its commercial vehicle axle business in India will allow the company to focus more on ICE, hybrid, and fully electric passenger vehicle pickup truck and van applications globally while also providing financial flexibility.

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