Tuesday, 8 March 2011

Hero to buy out Honda stake in Indian JV for $851 mn

Mumbai, INDIA: Hero Investments has agreed to buy Honda Motors Ltd's 26 percent stake in Hero Honda Motors for around $851 million in a deal that will see the Japanese automaker exit its joint venture in India after more than 26 years. 
 
Hero Investments is buying the stake at Rs 739.97 a share, it said in a statement.

Shares in Hero Honda fell more than 3 percent following the news. The Hero Honda joint venture was India's largest motorcycle manufacturer with more than half the domestic market.

Honda also has a wholly owned subsidiary in India, which makes motorcycles and scooters.

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