Bharat Forge Limited has entered into a definitive agreement to acquire AAM India Manufacturing Corporation Private Limited (AAMIMCPL), a subsidiary of American Axle & Manufacturing Holdings, Inc. The deal valued at INR 5,445.30 million marks a significant expansion for Bharat Forge in the commercial vehicle axle business. The acquisition will include AAMIMCPL’s operations in Pune and Chennai, as well as its Pune Engineering and Development Centre. The transaction is subject to approval from the Competition Commission of India (CCI) and other closing conditions.
AAMIMCPL is a key manufacturer of axles for light, medium, and heavy-duty commercial trucks and passenger buses in India. This acquisition is set to further enhance Bharat Forge’s presence in the vehicle component sector, allowing the company to expand into new product offerings. Once the regulatory approvals are in place, Bharat Forge will integrate AAMIMCPL’s technical expertise and industry relationships into its broader business strategy.
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, noted that the acquisition will help scale up Bharat Forge’s business in the medium to long term. Kalyani also highlighted that this transaction aligns with Bharat Forge’s ongoing efforts to diversify its product portfolio and enter new markets.
For American Axle & Manufacturing, the decision to sell its commercial vehicle axle business in India reflects its focus on core areas such as internal combustion engines, hybrid, and electric vehicle solutions for passenger vehicles and SUVs. David C. Dauch, Chairman and CEO of American Axle, stated that the sale will provide the company with financial flexibility while enabling it to concentrate on its global vehicle applications. He also affirmed that both companies are committed to ensuring a smooth transition of ownership and continued supply chain stability for customers.