Reuters India has reported that automotive parts maker Motherson Sumi Systems' board of directors has approved the merger of two units and a group company with itself to consolidate its wiring harnesses and plastic components business.
"The merger will bring our wiring harness business in India under one entity and make decision-making easier for the business and help us serve customers better," commented G.N. Gauba, chief financial officer for Motherson Sumi.
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Motherson Sumi, which makes a variety of auto parts including rear-view mirrors, wiring harnesses, and high-tension cords, counts Volkswagen , Ford, General Motors, Hyundai Motor Co and Maruti Suzuki among its major clients.
Motherson CFO Gauba added that the exchange ratio for the merger of group firm Sumi Motherson Innovative Engineering Limited (SMIEL) with Motherson Sumi will be decided on the basis of valuation made by Deloitte in 3-4 weeks. According to Reuters, under the announced merger move, the maker will also absorb its two wholly-owned units: wiring harnesses maker MSSL Global Wiring Ltd, and India Nails Manufacturing Pvt Ltd., which mainly owns land and buildings.
Full Story: Motherson Sumi to merge group firm, 2 units (in.reuteurs.com)
