New Delhi, Jul 24 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval to Sweden-based Aktiebolaget Volvo (publ) for investment of 275 million dollars to acquire 45.6 per cent equity shares in a new joint venture company with Eicher Motors Ltd (Eicher).
Eicher will own the remaining 54.4 per cent stake in the JV named Eicher Motors India Ltd (EMIL).
EMIL was incorporated on March 3, 2008 for carrying on the commercial vehicle business along with related components and design services business, which is to be transferred by Eicher to EMIL and demerger of sales and distribution network of Volve India Pvt Ltd (Volvo India) in to EMIL.
The approval will be subject to the following conditions: (i) Compliance with the RBI/SEBI guidelines; (ii) Compliance with the provisions of Press Note 1 (2005 series) and Press Note 9 (1999 series) and (iii) Approval of the relevant High Courts for the demerger of distribution business of Volve India.
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