M&M seeks FIPB approval for JV with BAE
Mahindra and Mahindra and British aerospace major BAE Systems have moved the FIPB seeking its permission for 26 per cent stake for the foreign parter in their proposed joint venture that will produce defence equipment.
By PTI |
NEW DELHI: Mahindra and Mahindra and British aerospace major BAE Systems have moved the FIPB seeking its permission for 26 per cent stake for the foreign parter in their proposed joint venture that will produce defence equipment.
The two companies in a statement today said they were committed to work together in a joint venture that would produce world leading land systems for the Indian armed forces and the export market.
Over a month ago, the Foreign Investment Promotion Board had rejected an application from Mahindra and Mahindra and BAE Systems for allowing 49 per cent stake in their proposed JV for the British company.
Following the rejection, the two companies had to modify their arrangement and comply with the defence ministry cap of 26 per cent on foreign participation in defence production in India. Under the revised arrangement, M&M will hold 74 per cent equity in the joint venture.
The two companies in a statement today said they were committed to work together in a joint venture that would produce world leading land systems for the Indian armed forces and the export market.
Over a month ago, the Foreign Investment Promotion Board had rejected an application from Mahindra and Mahindra and BAE Systems for allowing 49 per cent stake in their proposed JV for the British company.
Following the rejection, the two companies had to modify their arrangement and comply with the defence ministry cap of 26 per cent on foreign participation in defence production in India. Under the revised arrangement, M&M will hold 74 per cent equity in the joint venture.
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