German carmaker Daimler is selling up to $429 million worth of shares in Tata Motors at a discount of up to 7 % to the stock's Monday Close (8th March’2009) of Rs 796.75. Citigroup is the banker to the deal.

As of December 2009, Daimler held 5.34% of Tata Motors' ordinary shares. The promoters hold nearly 38% while Life Insurance Corporation has 11.2% in the company.
Tata makes the world's cheapest car, the Nano, and also owns the UK-based Jaguar and Land Rover luxury brands.

Transaction Reference:ET

Daimler is in the process of setting up lightweight commercial vehicles project at Chennai to make trucks and buses from Mitsubishi Fuso stable for the local and export markets by 2010.Its five leading truck brands are Mercedes-Benz, Freightliner, Sterling, Western Star, and Mitsubishi Fuso.Daimler will build the Mitsubishi Fuso Canter truck in 2010.It has been assembling its Actros trucks and buses at Pune.

In 2008, Daimler had entered into 60:40 JV with the Hero group for manufacturing trucks by 2010. The Munjals exited the JV in April 2009 due to poor performance of the commercial vehicle segment. Daimler had bought out Hero’s 40% stake in Daimler Hero Motor for Rs 106 crore.

The Tatas exited from Mercedes Benz India, which was later called Daimler Chrysler India, as it entered into small car venture Indica. The collaboration was a 51:49 JV between Daimler and Tata Motors for manufacturing Benz cars in India.

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