The proposed deal is expected to be completed within three months from the date of signing, subject to necessary approvals, Samvardhana Motherson Automotive Systems Group BV (SMRPBV) said in a statement.
JMCG (Jiangling Motors Corporation Group) will continue to retain its 40 per cent stake in Nanchang JMCG Mekra Lang Vehicle Mirror, which produces 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 (Jiangxi, China) and reported a turnover of CNY 131 million (around Euro 17 million) in 2020.
“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 provide access to new customers and vehicle segments, bringing more opportunities for future growth and expansion,” Motherson Group Chairman Vivek Chaand Sehgal said.
The company, however, did not share financial details of the deal.
With this acquisition, the auto component group will expand its portfolio into the commercial vehicle segment, thus opening new opportunities for growth in this region.
The additional manufacturing facility will further strengthen its footprint to six plants across China and provide extra capacity in the region for future growth.
For all the latest Automobile News Click Here
For the latest news and updates, follow us on Google News.
