Mumbai, Sept. 12: The Tata group today announced that it has reached an agreement with Jardine Motors to acquire its 50 per cent stake in Concorde Motors Limited (CML).
CML is a joint venture between the Tata group and Jardine Motors, with each partner holding 50 per cent of the equity and represents Tata Engineering’s passenger vehicles.
The Jardine Matheson group is learnt to have decided to exit the partnership as only three of the dealerships based in south India were profitable while the others based in western and the northern region making losses.
The value of the acquisition was kept under wraps. After the acquisition Tata Engineering will hold 49 per cent against its current holding of 25 per cent, Tata Industries will own 44.4 per cent against the current stake of 15 per cent and Tata Finance Ltd will own 6 per cent against the earlier 10 per cent.
The two companies said the agreement is subject to necessary statutory approvals and consents.
The Tatas will, in line with the global trend, look at expanding their network of in-house dealerships, sources said.