New Delhi, August 13
Eicher Motors on Thursday mentioned its subsidiary VE Commercial Vehicles has entered right into a enterprise switch settlement to amass Volvo Group India’s bus enterprise for a money consideration of Rs 100.50 crore.
VE Commercial Vehicles Ltd (VECV) is within the enterprise of producing and promoting the Eicher branded vehicles and buses and likewise distributes Volvo branded vehicles and supplies aftermarket companies and distribution of spare elements for Volvo branded vehicles and buses.
Apart from being a subsidiary of the corporate, VCEV can also be a three way partnership between Eicher Motors and Volvo Truck Corporation, Sweden and Aktiebolaget Volvo (Publ.), Sweden.
VECV entered right into a enterprise switch settlement on August 12 with Volvo Group India for acquisition, as a going concern on hunch sale foundation, of the bus enterprise of Volvo Group India, Eicher Motors mentioned in a regulatory submitting.
The settlement is for manufacture, meeting, distribution, and sale of the Volvo buses in India, and different rights forming a part of the mentioned enterprise, for a consideration of Rs 100.50 crore, it mentioned.
“With the combination of Volvo Bus India into VECV, we intention to form the way forward for the Indian bus business by providing the widest vary of transport options to our clients.
“Post the completion of the transaction, VECV and VBI will consolidate their bus businesses into a newly formed bus division within VECV. This division will offer Volvo and Eicher branded buses, and will maximise synergies to capitalise on market opportunities,” Siddhartha Lal, Chairman, VECV mentioned. — PTI