Hyundai India Signs Term Sheet with General Motors to Buy Talegaon Plant

Hyundai Motor India Limited (HMIL) and General Motors (GM) have entered into a term sheet agreement, which will see the acquisition of GM India's plant in Talegaon, Maharashtra. Central to the term sheet is the proposed acquisition of land and buildings as well as machinery and equipment used for manufacturing purposes at General Motors India's Talegaon plant. The agreement, which covers the terms and conditions of a proposed investment, is said to be considered valid for a stipulated time frame, as the final sale agreement is expected to be signed once all the legal clearances from relevant authorities, including settlement with the Talegaon plant workers, are obtained. 

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'The proposed acquisition is subject to the signing of the "Definitive Asset Purchase Agreement" and fulfilment of conditions precedent and receipt of regulatory approvals from relevant government authorities and all the stakeholders related to the acquisition,' Hyundai Motor, India's first smart mobility solutions provider, stated in a press note. 

According to some reports, Mahindra and Tata Motors too were in the race to acquire GM India's Talegaon plant, where production was halted in early 2020. Set up in 2008, the Talegaon plant has a manufacturing capacity of 1.30 lakh vehicles and 1.60 lakh engines per annum.  

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China's Great Wall Motors also signed an agreement with General Motors India in 2020 to purchase the Talegaon plant. However, the deal collapsed in June last year after the term sheet was extended twice.