Ashok Leyland to acquire a 26% stake in UK’s Optare 02 August 2010
Hinduja Automotive-owned Ashok Leyland is buying a 26% stake in £80 million turnover bus manufacturer Optare for an estimated $7.5 million.
R Seshasayee, managing director of Ashok Leyland and executive vice chairman of Hinduja, says the deal will help Ashok Leyland accelerate its technology, while Optare will be able to cut costs by using Ashok Leyland's lower-cost supply chain and co-operating in new product development.
Ashok Leyland is one of the market leaders in buses in India, and has been advancing its organisation with purpose built bus-plants in Alwar in India and Ras Al Khaimah in the United Arab Emirates.
It has been expanding into modern urban mobility in India and other markets, and recently launched a range of city buses and inter-city coaches.
"This strategic alliance is a critical part of our global bus programme. In Optare, we have found a European manufacturing partner who shares our vision for state-of-art buses at affordable prices. Together, we will be able to offer future-ready products of high quality and design that are competitively priced to customers in almost all regions," comments Seshasayee.
"This new venture will deliver direct benefits to UK bus customers, while propelling Optare onto the global stage," adds John Fickling, Optare's non-executive chairman. "We will benefit from the tremendous opportunities offered by Ashok Leyland not only as an industry giant but as a leader in advanced technology", he says.
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