List of mergers and acquisitions in automobile industry in india
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Here is a list of top deals signed in 2016.
1. JK Tyre acquires Cavendish industries
Possibly one of the first business acquisition of this financial year came with JK Tyre acquiring Cavendish Industry for a whopping Rs. 2200 crore. Cavendish Industries houses three tyre business undertakings of Birla tyres. The manufacturing facilities are located in Laksar near Haridwar and manufactures a range of tyres, tubes and flaps. This acquisition JK Tyres now have 12 manufacturing units across India and Mexico.
2. Merger of Ashok Leyand and Hinduja Foundries
Ashok Leyland’s merger with the auto-component maker Hinduja Foundries is seen as a very pragmatic decision by the Hinduja group. The board of both the companies approved this decision in September 2016. Hinduja foundries is a very critical supplier to Ashok Leyland and constitutes to one-third of its revenue. Hinduja foundries has two manufacturing plants in and around Chennai operating at 65% capacity.
3. Motherson Sumi acquires auto business unit of Abraham and Co
Hungary based Abraham and Co was acquired by auto component major Motherson Sumi Systems Ltd (MSSL) for about Rs.77 crore in September this year. The deal was completed in late October 2016. MSSL through its 100% subsidiary would acquire the land, building and machinery of Abraham and Co Ltd for a purchase price consideration of EUR 10.4 million. This acquisition will help MSSL to further expand is synergies through supplies to SMR and to the new upcoming facilities in Europe.
4. Volkswagen Trucks and Buses buys stake in Navistar for $256 million
Volkswagen trucks and buses, an arm of German automaker Volkswagen in September announced that it will buy a minority stake in Navistar for $256 million. The two companies entered a joint venture that is currently helping them both to source parts for both businesses. Going ahead there will also be technology sharing, with a strong focus on powertrain technology. The day this deal was announced Navistar surged over 30% I pre-market trading.
5. Mahindra & Mahindra’s year of acquisition
First SsangYong then Pinninfarina and now has invested further in its two-wheeler business by acquiring BSA, the classic British motorcycle brand for Rs. 28 crore. Mahindra is aligning its business strategy and creating more lifestyle brands. Mahindra has already announced that it will not be launching the BSA motorcycles here in India very similar strategy as we have seen Peugeot Motorcycles. With this deal Mahindra has also acquired the license to manufacture Jawa two-wheelers in India. On its farm equipment business the Indian manufacturer also acquired 35% stake in Finland’s Sampo Rosenlew for about Rs 135 crore marking its foray into the combine harvester business.
6. Nissan acquires 34% stake in Mitsubishi Motors
One of the biggest alliances of 2016 is between the Japanese car maker Nissan and Mitsubishi. In October 2016 Nissan announced that it has acquired 34% equity stake in Mitsubishi Motors to become its largest shareholder. Going forward Mitsubishi Motors will become a part of the global alliance with Nissan and Renault. The Alliance will be in the world’s top three automotive groups by global volumes, with sales of over 10 million units in 2016.
7. Samsung buys Harman International for $8 billion
Consumer electronic manufacturer Samsung Electronics in November reported that would by US auto parts maker Harman International industries for $8 billion and its also the company’s first venture to enter the growing market for automotive technology to manufacture connected cars. This deal has given the South Korean manufacturer an edge in the global market for online-connected auto parts. This deal is also considered to be the Samsung’s biggest deal in the firm’s history.
8. Ashok Leyland acquires LCV business from Nissan Motor Corporation
In late November Ashok Leyland completed the acquisition of Nissan Motor’s stake in each of its three joint ventures formed between the two companies. Under the new deal Ashok Leyland will continue to build Dost, Mitr and Partner LCVs which are based on Nissan’s design, technology under a licensing agreement.
1. JK Tyre acquires Cavendish industries
Possibly one of the first business acquisition of this financial year came with JK Tyre acquiring Cavendish Industry for a whopping Rs. 2200 crore. Cavendish Industries houses three tyre business undertakings of Birla tyres. The manufacturing facilities are located in Laksar near Haridwar and manufactures a range of tyres, tubes and flaps. This acquisition JK Tyres now have 12 manufacturing units across India and Mexico.
2. Merger of Ashok Leyand and Hinduja Foundries
Ashok Leyland’s merger with the auto-component maker Hinduja Foundries is seen as a very pragmatic decision by the Hinduja group. The board of both the companies approved this decision in September 2016. Hinduja foundries is a very critical supplier to Ashok Leyland and constitutes to one-third of its revenue. Hinduja foundries has two manufacturing plants in and around Chennai operating at 65% capacity.
3. Motherson Sumi acquires auto business unit of Abraham and Co
Hungary based Abraham and Co was acquired by auto component major Motherson Sumi Systems Ltd (MSSL) for about Rs.77 crore in September this year. The deal was completed in late October 2016. MSSL through its 100% subsidiary would acquire the land, building and machinery of Abraham and Co Ltd for a purchase price consideration of EUR 10.4 million. This acquisition will help MSSL to further expand is synergies through supplies to SMR and to the new upcoming facilities in Europe.
4. Volkswagen Trucks and Buses buys stake in Navistar for $256 million
Volkswagen trucks and buses, an arm of German automaker Volkswagen in September announced that it will buy a minority stake in Navistar for $256 million. The two companies entered a joint venture that is currently helping them both to source parts for both businesses. Going ahead there will also be technology sharing, with a strong focus on powertrain technology. The day this deal was announced Navistar surged over 30% I pre-market trading.
5. Mahindra & Mahindra’s year of acquisition
First SsangYong then Pinninfarina and now has invested further in its two-wheeler business by acquiring BSA, the classic British motorcycle brand for Rs. 28 crore. Mahindra is aligning its business strategy and creating more lifestyle brands. Mahindra has already announced that it will not be launching the BSA motorcycles here in India very similar strategy as we have seen Peugeot Motorcycles. With this deal Mahindra has also acquired the license to manufacture Jawa two-wheelers in India. On its farm equipment business the Indian manufacturer also acquired 35% stake in Finland’s Sampo Rosenlew for about Rs 135 crore marking its foray into the combine harvester business.
6. Nissan acquires 34% stake in Mitsubishi Motors
One of the biggest alliances of 2016 is between the Japanese car maker Nissan and Mitsubishi. In October 2016 Nissan announced that it has acquired 34% equity stake in Mitsubishi Motors to become its largest shareholder. Going forward Mitsubishi Motors will become a part of the global alliance with Nissan and Renault. The Alliance will be in the world’s top three automotive groups by global volumes, with sales of over 10 million units in 2016.
7. Samsung buys Harman International for $8 billion
Consumer electronic manufacturer Samsung Electronics in November reported that would by US auto parts maker Harman International industries for $8 billion and its also the company’s first venture to enter the growing market for automotive technology to manufacture connected cars. This deal has given the South Korean manufacturer an edge in the global market for online-connected auto parts. This deal is also considered to be the Samsung’s biggest deal in the firm’s history.
8. Ashok Leyland acquires LCV business from Nissan Motor Corporation
In late November Ashok Leyland completed the acquisition of Nissan Motor’s stake in each of its three joint ventures formed between the two companies. Under the new deal Ashok Leyland will continue to build Dost, Mitr and Partner LCVs which are based on Nissan’s design, technology under a licensing agreement.
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List of mergers and acquisitions in automobile industry in india.
Explanation:
Mahindra & Mahindra-Ford
Mahindra owning a 51 percent controlling stake and Ford owning a 49 percent stake.
Daimler-Benz and Chrysler
Took place in 1998, with the american based automobile manufacturer Chrysler Corp and was Valued at $38 billion.
Fiat and Chrysler
Took place in 2009 and had Fiat and the US and Canadian governments as principal owners.
Tata Motors Ltd’s acquisition of Jaguar and Land Rover
Took place in 2008, Tata Motors acquired the Jaguar and Land Rover (JLR) businesses from Ford Motor for a net consideration of $2.3 billion.
Nissan and Mitsubishi Motors
Took place in 2016, Nissan purchased a 34% stake in Mitsubishi at a cost of around £1.5 billion.
Volkswagen and Porsche
Took place in 2012, Volkswagen AG bought at about 50% stake in Porsche AG in the first step towards an combined automotive group’ with Porsche.
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- brainly.in/question/2847376 answered by Ashakantasharma.
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