Tata Motors subsidiary to complete acquisition of Ford India's manufacturing plant at Sanand, Gujarat on Jan 10

2 Jan 2023 , 12:18 PM

Tata Passenger Electric Mobility Limited (“TPEML”), a subsidiary of Tata Motors Limited (“TML”), and Ford India Private Limited (“FIPL” and together with ‘TPEML”) had executed a Unit Transfer Agreement on August 7, 2022 for acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat.

This acquisition inter-alia includes: (i) entire land & buildings; (ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein; and (iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs725.7 crore (Seven Hundred Twenty Five Crores and Seventy Lakhs).

Pursuant to the fulfilment of the necessary condition precedents for the transaction, including receipt of relevant government approvals, the Parties have decided to proceed towards completion of the Transaction on January 10, 2023, the company said in a statement.

As part of the transaction, all eligible employees of FIPL’s vehicle manufacturing plant have been offered employment with TPEML on terms, conditions and benefits of service similar to those that are currently availed by them.

TPEML would like to take this opportunity to extend a warm welcome to all the eligible FIPL employees who have accepted its offer of employment and who shall become TPEML employees with effect from 10th January 2023.

At around 12:22 PM, Tata Motors was trading at Rs394.75 per share higher by 1.71% on the BSE.

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