Financial Daily from THE HINDU group of publications
Friday, Sep 13, 2002
Financial Daily from THE HINDU group of publications Friday, Sep 13, 2002 |
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Mergers & Acquisitions Corporate - Mergers & Acquisitions Tatas buy out Jardine stake in Concorde Our Bureau
MUMBAI, Sept. 12 THE Tata group has bought Jardine Motors' 50 per cent stake in its joint venture dealership company, Concorde Motors Ltd, set up to market Indica. Concorde Motors Ltd was set up as a 50:50 joint venture between the Tata group and Jardine Motors about five years ago. In the new structure, Tata Engineering will hold 49 per cent stake, Tata Industries Ltd 44.4 per cent stake and Tata Finance Ltd 6.6 per cent. According to an official at the Tatas, foreign equity holding was posing as a restraint for certain transactions. Besides, Jardine Motors was looking to exit primarily because business was not growing as originally conceived, an official of the foreign company said. This prompted Concorde Motors Ltd to close down its units at Delhi, Ludhiana, Surat, Mumbai and Lucknow. The start-up losses were high. Thereafter, the business focus was shifted to the southern cities of Bangalore, Chennai and Hyderabad. The Jardine Motors' official said the foreign partner had been forced to exit at a loss, but declined to give any financial details.
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