Samvardhana Motherson to Acquire Assets of Frame Manufacturing and Assembly Operations from Daimler India Commercial Vehicles

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Source: Samvardhana Motherson

As a part of the transaction, Samvardhana Motherson International Limited (SAMIL) has signed a long-term agreement with Daimler India Commercial Vehicles Pvt. Ltd. (DICV) for supply of the complete frame assembly.

September 2022: Samvardhana Motherson International Limited (SAMIL) (formerly Motherson Sumi Systems Ltd.) has signed a strategic agreement to acquire assets of frame manufacturing and assembly operations from Daimler India Commercial Vehicles Pvt. Ltd. (DICV) operated out of its facilities in Chennai at book value. Also, as a part of the transaction SAMIL has signed a long-term agreement with DICV for supply of the complete frame assembly.

Currently SAMIL (via its 100 percent subsidiary) runs the manufacturing operations of the frame manufacturing facility of DICV. The frame assembly operations are managed by DICV itself in a separate facility. Once the transaction is completed, SAMIL will own the assets (including long term leasehold rights for land) and will run end to end operations for frame manufacturing and assembly and supply to DICV under the long-term supply contract.

The transaction is expected to close during Q3 fiscal year 2022-23, subject to customary closing conditions and necessary regulatory approvals. Further details of the transaction are enclosed with this disclosure.