Aditya Birla Nuvo to buy out Japanese collaborator's stake in Birla NGK Insulators

Aditya Birla Nuvo Ltd is buying out its Japanese collaborator NGK Insulators Ltd's stake in its 50:50 joint venture Birla NGK Insulators Pvt Ltd (Birla NGK), which is in the insulators business.

The Aditya Birla Group company recently entered into a share purchase agreement with NGK and its affiliate Mitsubishi Corporation to acquire their entire equity stake in Birla NGK in two stages.

On completion of the transaction, Birla NGK will cease to be a joint venture company and become a subsidiary.

The existing marketing agreement, agreement for knowhow, patents and technical assistance between the joint venture partners will also be terminated on completion of the deal, due to be completed by December 2006.