In a major development, Tata Motors will buy out its partner’s stake in bus joint venture (JV) firm Tata Marcopolo Motors. Tata Motors will buy out for around Rs 100 crore.

Marcopolo S.A. has decided to exit from the JV and offered to sell its 49 per cent shareholding in the JV to the company.

The company and Marcopolo S.A. have entered into a share purchase agreement where the firm will purchase the balance 49pc shareholding in Tata Marcopolo Motors Ltd (TMML) for a cash consideration of Rs 99.96 crore.

Tata Motors said it has signed a deal to purchase the balance 49 per cent shareholding from its joint venture partner.

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Tata Marcopolo Motors is a 51:49 JV formed in 2006 between Tata Motors and Marcopolo S.A., one of the largest bus and coach manufacturers globally.

The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied Tata Motors.

Tata Motors said all technologies pertaining to existing bus body products manufactured will continue to vest with TMML.

In addition, as part of the transition, Marcopolo S.A. will continue to license the “Marcopolo” trademarks to TMML for a minimum of three years with a non-compete provision in India for a corresponding period, it added.

The company, Marcopolo S.A. and TMML intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services, Tata Motors said.