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Tata Passenger Electric Mobility (TPEML), a subsidiary of Tata Motors, Friday said it has received all regulatory approvals for acquisition of Ford India Private Ltd (FIPL)’s manufacturing plant at Sanand, Gujarat and will complete the transaction on January 10, 2023.
In August this year, the carmakers entered into an agreement to acquire the plant, which includes entire land and building; vehicle manufacturing machinery and equipment; and transfer of all eligible employees, for Rs 725.7 crore.
“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 exchange filing.
With existing capacities near saturation, the acquisition will unlock an additional state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum, the company said.
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, it said.
