Maruti board OKs pact to buy Suzuki’s Gujarat unit stake

Maruti Suzuki India has announced its plans to acquire 100% equity capital of Suzuki Motor Gujarat (SMG) from Suzuki Motor Corporation. The move will increase Maruti’s equity from 56.5% to 58.2%. The company will purchase 1,284 crore shares of SMG for a total consideration of Rs 12,841 crore. The acquisition will simplify operations and bring all manufacturing activities under one entity. SMG is a wholly-owned subsidiary of Suzuki Motor Corporation and supplies its entire production to Maruti Suzuki India. Shareholder approval for the acquisition will be voted on for a month.