Force Motors to acquire Man Trucks India's MP plant

Force Motors has agreed to acquire the Pithampur manufacturing plant of MAN Trucks India in Madhya Pradesh, expanding its industrial footprint in the state's automotive manufacturing hub.

The company disclosed the development in a filing with the BSE on Thursday, saying its board had accepted a proposal from MAN Trucks India for the sale and transfer of assets at the facility.

The transaction will cover immovable and movable properties as well as certain intangible assets located at and used by MAN Trucks India at its plant in Pithampur, in Dhar district.

"This arrangement is being recorded by binding agreements. The arrangement would be subject to receipt of necessary approvals," Force Motors said in its regulatory filing.

The company said the actual transfer of the assets was expected to be completed by the end of October 2018, or by another date mutually agreed upon by Force Motors and MAN Trucks India.

The acquisition gives Force Motors an opportunity to strengthen its manufacturing capabilities at Pithampur, one of Madhya Pradesh's important automotive and engineering clusters. The facility's existing industrial infrastructure could also provide the company with additional capacity and assets to support its future business plans.

The transaction remains subject to the required regulatory and other approvals before the transfer can be completed.