Pune: Bharat Forge, India’s largest auto Components exporter, on Thursday said it was entering into a definitive agreement to acquire AAM India Manufacturing Corporation for Rs 544.53 crore.
AAM India, a subsidiary of American Axle & Manufacturing Holdings, is a leading manufacturer of axles for light, medium and heavy-duty commercial trucks and passenger buses in India.
After this transaction, the Pune-based Bharat Forge will acquire AAM India’s commercial vehicle axle business in Pune and Chennai and the Pune Engineering and Development Center.
The transaction requires approval from the Competition Commission of India (CCI) and will only close once this approval is obtained, and all other customary closing conditions are fulfilled.
“AAM India’s technical expertise and existing relationships with various industry players will further scale-up the business over the medium to long term,” said Amit Kalyani, Vice Chairman and Joint MD of Bharat Forge.
He noted that the acquisition would be a significant milestone in adding product solutions to its repertoire on the vehicle component side. “This transaction will enable BFL to get into a new business for manufacturing of products,” Kalyani said.
AAM Chairman and CEO David Dauch stated that selling its commercial vehicle axle business in India will allow the company to focus on internal combustion engines (ICE), hybrid, and fully electric passenger vehicle applications globally while providing financial flexibility.
At 3:30 PM, the shares of Bharat Forge closed 0.34% lower at Rs 1,470 on NSE.
