Minority stakeholders approve Maruti acquisition of SMG plant

Nov 20 2023 09:08 AM IST
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Minority shareholders give the thumbs-up to theacquisition of Suzuki Motor Gujarat. With close to 99% votes in favour, minority shareholders give a thumbs up to Maruti Suzuki for acquisition of SMG. The plant situated in Hansalpur, 97 km from Ahmedabad, began its production in February 2017.

Ahmedabad: The decks are clear forMaruti Suzuki India Limited(MSIL) to acquire complete stake in the car manufacturingplantinHansalpur, Gujarat, which is owned by Suzuki Motor Corporation (SMC).Minority shareholders give the thumbs-up to theacquisitionofSuzuki Motor Gujarat(SMG). With close to 99% votes in favour, minority shareholders give a thumbs-up to Maruti Suzuki for acquisition of SMG, the company announced in its stock exchange filing on Saturday.Earlier this week, Maruti Suzuki India Ltd (MSIL) announced its decision to buy out its contract manufacturing partner Suzuki Motor Gujarat (SMG) for a potential value of Rs 12,755 crore.The company plans to carry out the acquisition through an equity swap. The board had approved the acquisition.SMC owns 100% of SMG, which supplies its entire production to Maruti Suzuki. The plant situated in Hansalpur, 97 km from Ahmedabad, began its production in February 2017. It manufactures cars for Maruti Suzuki India Limited (MSI), catering to its domestic and export markets in Latin America and Africa.In terms of actual production, logistics, sales and costs, there will be no change as cars supplied by SMG as a contract manufacturer will continue to be supplied as before.

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