Tata Motors successfully acquired Hispano Carrocera SA

Tata Motors, on October 20, 2009, told reporters that it has completed the acquisition of Hispanno Carrocera SA, the Spanish bus and coach maker. In 2005, Tata acquired 21% stake in the company for a total price of euro 12 million. Hispano Carrocera sales its products in Europe and Africa. It has two manufacturing units- one in Spain and the other in Casablanca. Live Mint.com reports:

Tata Motors, which had a 21% stake in the Spanish bus and coach maker since 2005, said it acquired the stake exercising its call option, through mutual agreement with the other stake holder Investalia S.A.

The acquisition will help the company in further strengthening the ongoing initiatives, to improve operational efficiencies such as productivity improvement, cost reduction, new product development, help it improve market share, and enhance brand value.

According to the investment agreement, Tata Motors will have the license for technology and brand rights from Hispano. Ravi Kant has been appointed as the chairman of the company. At a meeting in Madrid, Ravi Kant said that this partnership would give give both companies an opportunity to use their complementary strengths to create high class transport solutions for intracity and intercity mass transportation in Spain, India and many other countries in the world.

Hispano Carrocera is well known for its premium quality vehicles in Spain. One of the largest manufacturers of bus and coaches in Europe the company has a 1000+ production capacity per year. Currently, it controls 10% of the bus and coach market in Spain.