Tata Motors has concluded its deal to acquire Ford India’s vehicle production plant in Sanand. The two companies had inked a unit transfer deal on August 7.
According to an exchange notice, Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors, has finalised the acquisition of Ford India’s car production unit in Sanand for Rs 725.7 crore.
TPEML and Ford India (FIPL) signed a unit transfer agreement on August 7 for the acquisition of FIPL’s plant in Sanand, Gujarat, including all land and buildings; the vehicle manufacturing plant and machinery and equipment located therein; and the transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 crore.
Tata Motors stated, “We will proceed with the deal on January 10, 2023, subject to the fulfilment of its required condition precedents. These include receipt of appropriate government permissions.”
Tata Motors has been a prominent participant in the electric-vehicle industry for some years, and the firm stated that it has strong ambitions to maintain this momentum with a future pipeline and EV investments.
As part of the deal, all qualified workers of FIPL’s car manufacturing factory were offered employment with TPEML on terms, conditions, and benefits comparable to those they already enjoy. Employees of FIPL who accept its offer of employment will become TPEML employees on January 10, 2023.
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