VE Commercial Vehicles Limited (VECV), a subsidiary of Eicher Motors has entered into a Business Transfer Agreement with Volvo Group India for acquisition of the bus business of Volvo Group (VGIPL) for a cash consideration of Rs 100.5 crore.
The agreement entails manufacture, assembly, distribution and sale of Volvo buses in India, and other rights forming part of the business by VECV. The acquisition will be completed approximately one-two months from the date of execution of the Business Transfer Agreement.
This acquisition aims to expand VECV’s existing commercial vehicles business. The acquisition is in the same area as the main line of business of VECV, which is manufacture and sale of commercial vehicles and related services.
VECV is currently in the business of manufacturing and selling the Eicher branded trucks and buses and also distributes Volvo branded trucks and provides aftermarket services and distribution of spare parts for Volvo branded trucks and buses.
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