
Tata Motors demerger: Commercial, passenger vehicles businesses to be split into two separate listed companies
Hindustan TimesMumbai: Tata Motors' board has approved the proposal to demerge the company into two separate listed entities. The company said in a statement that the demerger will birth two companies -- a commercial vehicles business and a passenger vehicles business. "The demerger will be implemented through an NCLT scheme of arrangement and all shareholders of TML shall continue to have the identical shareholding in both the listed entities," the company said in the statement. Furthermore, while there are limited synergies between Commercial Vehicles and Passenger Vehicles businesses, there are considerable synergies to be harnessed across PV, EV and JLR particularly in the areas of EVs, autonomous vehicles, and vehicle software which the demerger will help secure," it added.
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