Komatsu To Buy L&T's Stake In JV
Japanese Engineering Firm – Komatsu is set to buyout the 50% stake in the Hydraulic equipment manufacturing JV – L&T Komatsu Limited from its partner Larsen &Toubro.
The deal excludes the Bangalore land and Komatsu has to relocate the unit to its manufacturing facility in Chennai.
This is a strategic decision from L&T to exit non-core businesses at a time its core engineering and construction operations are under severe stress.
L&T will use the land to build residential and commercial properties. The diversified conglomerate has already rolled out its first real estate project in the south — L&T South City in Bangalore. L&T Realty owns 1,200 acre across the country.
L&T-Komatsu was established in 1998 as 50:50 JV between L&T and Komatsu Asia Pacific Pte Ltd, Singapore (a wholly owned subsidiary of Komatsu, Japan). LTK manufactures hydraulic excavators and other hydraulic equipment.
Established in 1921, Komatsu manufactures and sale construction and mining equipment, utilities, forest machines and industrial machinery.
In the recent past L&T has sold many no-core businesses which includes – L&T sold its medical equipment to Mysore based startup Skanray Healthcare; L&T divested its entire stake in L&T Plastic Machinery limited to Japanese Firm - Toshiba Machine.
Recently in this space, Amtek Auto sold around 5% stake in its subsidiary Amtek Ring Gears Limited to a foreign investor. The company offloaded 10,23,934 equity shares for R200 per share, aggregating around R20.4 Cr; Varroc Group acquired 50% stake of Visteon Corporation's Chinese JV - Visteon TYC Auto Lamps Co., Ltd for around $20 Mn.
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