New Delhi: Vehicles maker Ashok Leyland has received approval of the Competition Commission of India (CCI) to buy out its Japanese partner Nissan Motors’ stake in three joint ventures.
It was announced in September that Nissan Motors would exit the three joint ventures by selling its stake to Ashok Leyland. Post-deal, the three entities would become wholly-owned subsidiaries of Ashok Leyland.
The three joint ventures are: Ashok Leyland Nissan Vehicles Ltd (ALNVL) for making vehicles, Nissan Ashok Leyland Power Train Ltd (NALPT) for manufacturing power trains and Nissan Ashok Leyland Technologies Ltd (NALT), which is a technology joint venture.
The Competition Commission of India, which keeps a tab on unfair business practices, has approved the proposed transaction, as per the regulator’s website.
“Nissan has agreed to sell to Ashok Leyland all of Nissan’s shares in three joint venture companies that were formed in 2008,” the two firms had said in a joint statement in September. It marked an end to their eight-year-old partnership.
Ashok Leyland is engaged in the manufacture and sale of commercial vehicles, defence vehicles kits, passenger vehicles, engines and spare parts.
Nissan Motors is into manufacturing, sale and marketing of vehicles and automotive parts.
PTI