Daimler completed the sale of a 5.34% stake in Tata Motors

Article by Christian A., on August 29, 2010

Daimler completed the sale of a 5.34% stake in India's Tata Motors for about 300 million euros ($408 million). But instead of rising, the stock prices of these two firms actually slightly dropped.

No reasons were given for the sale but several factors have been pointed out. With Tata's acquisition of the Jaguar Land Rover group, Tata becomes a competitor to Daimler's Mercedes-Benz brand worldwide.

Meanwhile, Daimler Trucks is working to create its own operations in India to make commercial vehicles that rival Tata's heavy commercial vehicles.

Unlike the rest of the globe, the Indian market is flourishing. Daimler realizes the extensive opportunity for growth in this country and making its moves would only create a tension in its partnership with Tata.

The 25.6 million shares sold saw an average transaction price that was discounted 5.8% from market value. Since 1954, Daimler and Tata have been partners in the Indian market with Tata producing licensed copies of Daimler vehicles.

While the partnership hasn´t been exactly smooth, the two firms say that they remain to be solid allies despite the latest development.

Topics: daimler, tata motors

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries