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July 05, 2006 16:21 IST
Leading car manufacturer Maruti Udyog Ltd [Get Quote] has bought Suzuki Motor Corporation's 30 per cent stake in the joint venture Maruti Suzuki Automobile India Ltd for Rs 12 crore (Rs 120 million), taking its total stake in MSAIL to 100 per cent.
MUL, which earlier held a 70 per cent stake in MSAIL, has acquired 12 lakh shares of Rs 100 each of the company from Japan's Suzuki Motor, thereby making it a wholly owned subsidiary, it informed the National Stock Exchange.
In April, the board of directors of MUL had decided to merge MSAIL with the company, in a bid to "add value for shareholders and eliminate all potential issues relating to inter-company transactions."
In the original arrangement finalised in September 2004, MSAIL was set up as a subsidiary to operate the new car plant in Manesar and was meant to be only a manufacturing company, with its other functions like sales and marketing, procurement of materials and R & D entrusted to MUL.
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