Bharat Forge Limited said it plans to acquire AAM India Manufacturing Corporation Private Limited (AAMIMCPL), a key player in the manufacturing of axles for commercial vehicles in India.

What Happened: Bharat Forge Limited on Thursday signed a share purchase agreement (SPA) to acquire 100% shareholding in AAMIMCPL. The acquisition includes AAMIMCPL’s commercial vehicle axle business, including its manufacturing assets in Pune and Chennai as well as the Pune Engineering & Development Centre.

The finalisation of this acquisition is contingent upon the fulfilment of certain conditions, in line with the terms agreed upon in the agreement and requisite regulatory approvals. The transaction is estimated at an enterprise value of ₹544.53 crore, subject to closing adjustments.

AAMIMCPL had a turnover of ₹1,585.86 crore in FY24.

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Amit Kalyani, vice chairman and joint managing director of Bharat Forge said the deal marks a significant milestone in the firm’s journey of expanding its product solutions in the vehicle component sector.

The transaction awaits approval from the Competition Commission of India (CCI) and fulfilment of other customary closing conditions.

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