Motherson Acquiring Assets Of Frame Assembly Business From Daimler India

Samvardhana Motherson International Limited (SAMIL) (formerly Motherson Sumi Systems) has signed a strategic agreement to acquire assets of frame manufacturing and assembly operations from Daimler India Commercial Vehicles (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.

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.