Tata Motors, Ford India inks pact for acquisition of Sanand Plant; stock surges ~3.5%

30 May 2022 , 02:09 PM

Tata Motors’ significant arm Tata Passenger Electric Mobility Limited (TPEML), and Ford India Private Limited (FIPL) have signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) to acquire FIPL’s Sanand vehicle manufacturing facility.

The company will acquire Land & Buildings, Vehicle Manufacturing Plant, Machinery and Equipment, and transfer all eligible employees of FIPL Sanand’s vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals.

TPEML will lease back the land and buildings of the Powertrain unit to FIPL in order to facilitate the operation of its Powertrain manufacturing facilities.

Tata Motor’s Passenger and Electric Vehicles have delivered exemplary growth with its New Forever range of products over the last two years. TPEML is seeking an investment into new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles.

This MOU for a potential acquisition of this unit is a win-win situation for all stakeholders. It will help Tata Motors in accelerating the enhancement of its PV/EV manufacturing capacity.

Tata Motors is currently trading at Rs443.15 up by Rs13.55 or 3.15% from its previous closing of Rs429.60 on the BSE. The scrip touched intraday high and low of Rs445 and Rs436.35 respectively.