Tata Motors buys out Spanish coach maker Hispano Carrocera

Tata Motors, which owned a 21-per cent stake in the Spanish bus and coach maker Hispano Carrocera, today said it acquired the remaining 79 per cent in the company by exercising its call option, through mutual agreement with the other stakeholder Investalia SA.

At a meeting held in Madrid today, Ravi Kant, executive director of Tata Motors received the share certificates from Gerardo Mugica, CEO of Hispano Carrocera SA. Ravi Kant also took over as chairman of Hispano Carrocera.

Tata Motors had acquired the 21 per cent equity stake in Hispano Carrocera SA for a total price of euro 12 million in 2005.

With the signing of the investment agreement, Tata Motors will have the licence for technology and brand rights from Hispano, Tata Motors said in a release.

Hispano Carrocera is an established and reputed bus and coach manufacturer in Spain enjoying excellent reputation for developing high quality vehicles. It operates in two manufacturing locations, namely, Zaragoza in Spain and Casablanca in Morocco, North Africa.

Speaking on the occasion, Ravi Kant, chairman, Hispano Carrocera SA and executive director of Tata Motors, said, "This partnership gives 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 around the world".