Force Exits JV with MAN trucks

The 50:50 joint-Venture between Force Motors Ltd. , and MAN Trucks & Bus AG Germany came to an end after Force Motors announced it exited from JV by selling its stakes for Rs. 1 , 000 crore.

Force Motors had earlier executed a Share Purchase Agreement on November 21, 2011 with Man Truck & Bus AG, its Joint Ventura partner in Man Force Trucks.

Force Motors Ltd., on receipt of all permissions and on completion of all conditions precedent, has sold and transferred 55,797,100 equity shares of Rs 10 each of Man Force Trucks Pvt. Ltd. to MAN for a consideration of €150mn.

The venture started in 2006 between the Indian and the German company to form MAN Force Trucks Pvt Ltd. , to manufacture heavy commercial vehicles in India. However the companies will continue to share the technological information for which a new contractual agreement will be signed.

I n 2003, Force Motors had planned to manufacture heavy commercial vehicles for the Indian market by sourcing technology under licence agreement. It had procured engines, cabs and axles from MAN, while gearboxes were sourced from ZF. Later, the domestic firm formed the joint venture company with MAN.