JSW Group plans acquisition of a 35% stake in MG Motor India

1 Dec 2023 , 11:09 AM

JSW Group, headed by Sajjan Jindal, signed a deal with China’s SAIC Motor on Thursday to purchase a 35% share in its Indian subsidiary MG Motor India in order to jointly oversee vehicle operations in the nation.

According to the terms of the agreement, JSW Group will purchase a 35% stake in SAIC’s Indian subsidiary MG Motor India for an undisclosed sum. The Chinese automaker will continue to provide sophisticated technologies and goods to the joint venture in order to provide mobility solutions to the Indian customer.

The deal comes as the Indian government increases its scrutiny of Chinese investments in the face of rising geopolitical concerns. The minority sale to JSW Group will allow the producer of Hector and Astor to expand operations in the domestic market, as well as provide the Indian conglomerate with a presence in India’s rapidly developing electric vehicle category.

On Thursday, SAIC President Wang Xiaoqiu and JSW Group’s Parth Jindal signed the shareholder agreement and the share purchase and subscription agreement at MG Motor’s London headquarters.

The joint company will seek the growth of the electric car ecosystem and occupy a leadership position in this arena, according to the duo. SAIC Motor and JSW Group stated that they want to develop strategic synergies by pooling resources in the automotive and new technology industries.

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