Tata Motors Acquires Ford India's Sanand Plant For $91M

Tata Motors Limited TTM Tata Passenger Electric Mobility Limited (TPEML) and Ford Motor Co's F Ford India Private Limited (FIPL), have signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL's manufacturing plant situated at Sanand, Gujarat.
The acquisition includes entire land & buildings, the Vehicle Manufacturing Plant along with machinery and equipment situated therein, and the transfer of all eligible employees of FIPL's vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 Crores (~$91 million).
FIPL will continue to operate its Powertrain Manufacturing Facility by leasing back the land and buildings of the Powertrain Manufacturing Plant from TPEML on mutually agreed terms.
The deal will unlock a manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.
Also Read: Tata Motors Records 51% Growth In July Vehicle Sales
Price Action: TTM shares closed lower by 1.18% at $29.22 on Friday.