MUMBAI (Commodity Online): Tata Motors Ltd (BOM: 500570) tank on the bourses today as the company acquired remaining stake of 79% in Spain’s bus maker, Hispano Carrocera SA.

The acquisition would give access to bus design and technology skills for the Indian auto giant. The company stocks traded weak on the Bombay Stock Exchange (BSE) today. The stocks gained in the early trading hours, but fell to the intra-day lows of Rs.568.25 in the afternoon trades. The stock was trading with loss of close to 1.5% in the choppy market.

The company had paid USD 12 million about Rs.70 crore in 2005 for buying a 21 per cent stake in the Spanish company. Ravi Kanth, now non-executive vice-chairman and then executive director of TM, was appointed chairman of Hispano.

The stake buy gave TM the access to Hispano’s design and technology in bus building. It also acquired the licence for brand rights of the Spanish company.

TM had the call option of buying the remaining stake of 79 per cent in Hispano, which it exercised today. It was also widely expected in the automotive industry that TM would eventually increase its stake in Hispano, mainly to reinforce itself as one of the world’s largest bus makers.

The company currently ranks second in the world in bus making. The call option was exercised through mutual agreement with the other shareholder, Investalia SA, Spain, stated a release from TM. Hispano now becomes a fully owned subsidiary of Tata Motors.

The Spanish company currently manufactures a variety of city and intercity touring coaches from two of its facilities located in Zaragoza in Spain and Casablanca in Morocco, North Africa. It also has commercial relations with more than 50 countries and a capacity to make almost 2,000 units every year.

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