Ashok Leyland has been granted Competition Commission of India approval to buy its Japanese partner Nissan Motors Limited’s stake in three joint ventures or JVs.
According to an antitrust regulator’s tweet on Thursday CCI approves acquisition of sole control by Ashok Leyland in its JVs with Nissan Motors Ltd.
The truck as well as bus manufacturer formally announced its plans to acquire all of the shares of Nissan Motors in three of its Joint Ventures in September.
These joint ventures focus on technology development as well as manufacturing of power trains and vehicles.
This deal was ironed out in the month of January when Vinod Dasari, managing director of Ashok Leyland, and Philippe Guerin-Boutaud, corporate the vice-president of Nissan’s global light commercial vehicle business met in Singapore to work out a system to allow Nissan to exit from the Joint Ventures.
This agreement will allow the company to continue manufacturing its flagship light commercial vehicles - Dost, Partner as well as Mitr (manufactured in Ashok Leyland’s Hosur plant)—with a 1 per cent royalty payable to Nissan.
The two companies had entered into JV agreements in the year 2008 to make light goods carriers such as vans and small trucks.
Meanwhile Ashok Leyland share price have been trading at Rs 91.20 apiece on the National Stock Exchange down by only 0.11 per cent. The share price opened at Rs 91.95 from a previous closing of Rs 91.30. The intraday high and the intraday low of the share are Rs 92.45 and Rs 89.20 respectively. A total of 1,24,07,732 shares of the company have been traded on NSE aggregating to a total amount of 11,291.04 lacs.
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