Samvardhana Motherson Automotive Systems Group BV (SMRPBV), has announced the acquisition of a majority stake in Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd by Ningbo SMR Huaxiang Automotive Mirrors Ltd. (SMR NBHX); which is a 50:50 joint venture in China under its subsidiary Samvardhana Motherson Reflectec (SMR).
With this transaction, SMR NBHX will acquire a 60% stake in the Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd. The proposed deal is expected to be completed within three months from the date of signing, subject to necessary approvals. JMCG (Jiangling Motors Corporation Group) will continue to retain its 40% stake in Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd.
Nanchang JMCG Mekra Lang Vehicle Mirror Co., Ltd. manufactures automotive mirrors for passenger vehicles, pick-up trucks, and light and heavy commercial vehicles in China. The company was established in 2006 with a manufacturing facility at Nanchang, China.
SMR NBHX is an existing supplier of vision systems to the passenger car OEMs in China. With this acquisition, SMR group will expand its portfolio into the commercial vehicle segment as well thus opening new opportunities for growth in this region. The additional manufacturing facility will further strengthen its existing footprint to 6 facilities across China and provide extra capacity in the region for future growth.
Commenting on the deal, Mr Vivek Chaand Sehgal, Chairman, Motherson said, “This acquisition is of strategic importance to us. We see a lot of synergies in the products and processes of both companies. This acquisition will further strengthen Motherson’s presence in this large and growing market and provides access to new customers and vehicle segments; bringing more opportunities for future growth and expansion.”
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.