MAHESHWARI & CO. advised a leading German automotive parts and components company on acquiring the 50% shareholding held by its Indian joint venture partner. The client develops, manufactures and supplies automotive components and related products. It had set up the joint venture with an Indian automotive company to carry on business and manufacturing activities in India’s automotive parts sector. With the acquisition, the Indian joint venture became a wholly owned subsidiary of the German company.
The Firm handled the legal side of the transaction from start to finish. This covered advice on the transaction structure, review and negotiation of the share acquisition documents, and the corporate, regulatory and foreign investment aspects of the acquisition. On Indian law, the Firm advised on corporate and foreign exchange considerations, including compliance with the Foreign Exchange Management Act (FEMA) and the applicable foreign investment regulations.
Alongside the share acquisition, the Firm assisted the client with the handover of the business and operational functions the joint venture partner had previously managed. The Firm coordinated the transfer of operational responsibilities, corporate and administrative functions, business processes and documentation, so the client could run and manage the Indian entity on its own after completion.
The Firm worked closely with the client and other stakeholders through to completion and implementation of the transaction.
Team: Ms. Jyotsna Chaturvedi, Head of Corporate Practice, and Ms. Shyamli Shukla, Senior Associate
