Ashok Leyland acquires LCV business from Nissan Motor Corporation

Date: 25 Nov 2016

Ashok Leyland Ltd, the flagship of the Hinduja Group, announced it has completed the acquisition of Nissan Motor Co. Ltd.’s stake in each of the three joint ventures (JVs) formed between the two companies, namely, Ashok Leyland Nissan-Vehicles Limited, Nissan-Ashok Leyland Powertrain Limited and Nissan-Ashok Leyland Technologies Limited.

 In September 2016, Ashok Leyland and Nissan announced that they had reached a new arrangement in which Nissan would transfer its ownership in the three JVs to Ashok Leyland subject to statutory approvals.

 With all necessary statutory approvals now in place the acquisition was completed for a consolidated consideration of Rs. 3/- paid by Ashok Leyland for all the shares of the three JVs.

Under the new arrangement, Ashok Leyland will continue to build, under a licensing agreement, the successful Dost, Mitr, and Partner light commercial vehicles, which are based on Nissan’s design, engineering and technology. Servicing and parts availability for customers will be ensured by a technical support arrangement. In addition, the two companies have agreed to continue a deal to procure made-in-India parts to Nissan.

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