Honda, the Japanese auto giant has reached an agreement to dissolve their 26-year old joint venture, Hero Honda, with the Hero Group by selling its entire stake in the India's largest two-wheeler maker.
Honda Motor is expected to sell its entire 26 per cent stake in Hero Honda to its partner Munjals-promoted Hero Group and would earn $1.2 billion from the sale.
"Honda and the Hero Group have reached the basic agreement this week to dissolve the partnership," sources said, The Japanese firm will offload its entire stake by as early as March next year and will no longer provide technical support to Hero Honda, the paper said.
At present, Hero Honda is finalizing plans to set up the fourth plant in the country. On the other hand, HMSI has announced an investment of Rs 500 crore to set up its second plant near Bhiwadi (Rajasthan), with an annual capacity of six lakh units.
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