Friday, February 25 2005 19:13 Hrs (IST) - World Time -

Mumbai: In its second global acquisition, Tata Motors Ltd today (Feb 25, 2005) acquired 21 per cent stake in Hispano Carrocera SA (HC), a Spanish bus manufacturing company for Rs 70 crore (12 million Euros).

India's largest vehicle manufacturer has also the option to acquire the remaining 79 per cent stake, Tata Motors said in a release in Mumbai today.

Tata Motors, which is the world's fifth largest medium and heavy commercial maker, would have the license for technology and brand rights from HC and the deal comprises equity, debt and technology, it said.

At present HC has a 25 per cent market share in Spanish bus market and sells buses in Europe and several other countries. It also has in-house production facility for buses and coaches.

"The strategic alliance with HC will give us access to its design and technology capabilities to fully tap the growing potential segment in India and other export markets, besides, providing us with a foothold in developed European markets", Executive Director (Commercial Vehicle Business Unit) S Ravi Kant said.

Earlier, in March 2004 the Tata Group Company had acquired South Korean truck major Daewoo's commercial vehicle unit, which produces trucks, tractors and other utility vehicles.