After the acquisition, JJ Impex shall become the wholly owned subsidiary of Maruti Suzuki.
India's top automaker Maruti Suzuki acquired Japan's Sumitomo Corporation's stake in their joint venture JJ Impex, a company engaged in automobile service and repair business.
The company has approved a 49.13 per cent equity acquisition of JJ Impex from two Sumitomo companies - Sumitomo Corporation and Sumitomo Corporation India Pvt Ltd in Delhi-based JJ Impex.
The transaction involves Maruti Suzuki picking up over 34.43 lakh shares from Sumitomo Corp, and 8.8 lakh share from its Indian arm. The total value of the acquisition is $2.87 million.
The acquisition is expected to be completed within six months. After the acquisition, JJ Impex shall become the wholly owned subsidiary of Maruti Suzuki India. The automaker shall also have the right to nominate and appoint all directors on the board of the company.
The company said the move will help Maruti strengthen its customer approach concerning service repairs and maintenance.