Bharat Forge will acquire AAM India Manufacturing Corp’s commercial vehicles axle business in Pune and Chennai along with the Pune Engineering and Development Centre.
17 Oct 2024 | 9322 Views | By Autocar Professional Bureau
Bharat Forge, a flagship company of Kalyani Group, has signed a definitive agreement to fully acquire American Axle & Manufacturing Holdings Inc’s India subsidiary AAM India Manufacturing Corp, for Rs 544.53 crore, to expand its customer base and manufacturing presence in India.
The deal includes AAM India’s commercial vehicles ...
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Bharat Forge, a flagship company of Kalyani Group, has signed a definitive agreement to fully acquire American Axle & Manufacturing Holdings Inc’s India subsidiary AAM India Manufacturing Corp, for Rs 544.53 crore, to expand its customer base and manufacturing presence in India.
The deal includes AAM India’s commercial vehicles axle business in Pune and Chennai along with the Pune Engineering and Development Centre.
"AAMIMCPL’s acquisition, when completed, will be a significant milestone in our transformational journey of adding product solutions to our repertoire on the vehicle component side,” Bharat Forge’s Vice Chairman and Joint Managing Director Amit Kalyani said.
“The strategic decision to sell our commercial vehicle axle business in India enables us to strengthen our focus on ICE, hybrid and full electric passenger vehicle, pickup truck/SUV, and van applications globally and provides additional financial flexibility,” AAM Chairman and CEO David C Dauch said.
The transaction is subject to approval from the Competition Commission of India and other customary closing conditions. Bharat Forge, which recently approved fundraising of Rs 2000 crore, noted that the acquisition will be completed within 120 days from the date on which approval from the CCI is received.
Established in 2008, Pune-based AAM India supplies axle products for light, medium and heavy-duty commercial trucks and passenger buses. It clocked Rs 1,585.86 crore in revenue during the financial year 2024.
Bharat Forge manufactures critical components for the automotive, construction, mining, and oil & gas sectors. It makes parts such as crankshafts, connecting rods, gears and steering knuckles for cars and commercial vehicles.