The acquisition aims to strengthen Bharat Forge's position in the commercial vehicles axle business in India and is pending approval from the CCI and other customary closing conditions.Bharat Forge Limited has signed a definitive agreement to acquire AAM India Manufacturing Corporation Private Limited (AAMIMCPL), a subsidiary of American Axle & Manufacturing Holdings, for an enterprise value of Rs 5,445.30 million, subject to closing adjustments. The acquisition aims to strengthen Bharat Forge's position in the commercial vehicles axle business in India and is pending approval from the Competition Commission of India (CCI) and other customary closing conditions.
Acquisition to strengthen Bharat Forge's commercial vehicle axle business
Founded in 2008, AAMIMCPL is a notable manufacturer of axles for light, medium, and heavy-duty commercial trucks and passenger buses in India. The acquisition will include AAMIMCPL’s commercial vehicle axle business operations in Pune and Chennai, alongside the Pune Engineering and Development Center.
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge Limited, expressed enthusiasm about the acquisition: “We are delighted to welcome the AAMIMCPL team to the Bharat Forge family. We look forward to relying on their technical expertise and existing relationships with various industry players to further scale-up the business over the medium to long term."
He further remarked on the strategic importance of the acquisition: “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. This transaction will enable BFL to get into a new business for manufacturing of products.”
From the perspective of American Axle & Manufacturing Holdings, Inc., this strategic sale aligns with their broader business goals. David C. Dauch, AAM Chairman and Chief Executive Officer, stated, “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. We are committed to collaborating with Bharat Forge to execute this agreement efficiently and support the continuity of supply from these facilities to customers during the ownership transition.”
The acquisition's completion is contingent upon receiving the necessary regulatory approvals and fulfilling customary closing conditions.
