After several months of speculation to acquire a manufacturing plant to support its demand for capacity expansion, Hyundai Motor India (HMI) today announced the signing of the 'Term Sheet' agreement with General Motors India (GMI).
It may be recalled that HMI was looking to acquire Ford India's plant either in Maraimalainagar near Chennai or Sanand in Gujarat. Tata Motors inked an agreement to acquire the latter. On the other hand, GMI was scouting for a buyer after its agreement with Chinese carmaker Great Wall Motors fell in June 2022.
Today's announcement by HMI on signing Term Sheet is for the potential acquisition of identified assets related to General Motors India's (GMI) Talegaon Plant in Maharashtra.
A term sheet can be described as a nonbinding agreement outlining the basic terms and conditions under which an investment will be made.
A statement from the carmaker noted that the term sheet covers the proposed acquisition of land and buildings, certain machinery and equipment for manufacturing at the GMi's plant in Talegaon.
The proposed acquisition is subject to the signing of the 'Definitive Asset Purchase Agreement' and fulfilment of conditions precedent and receipt of regulatory approvals from relevant Government authorities and all the stakeholders related to the acquisition, the statement said.
NB: Photo is representational; courtesy: GM Authority.
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