Bharat Forge Ltd. announced that it has entered into a definitive agreement to acquire AAM India Manufacturing Corporation Pvt. Ltd., a subsidiary of American Axle & Manufacturing Holdings. The acquisition will be done at an enterprise value of ₹544.5 crore, subject to closing adjustments.

AAM India Manufacturing Corporation is a manufacturer of axles for light, medium and heavy-duty commercial trucks and passenger buses in India. Post this transaction, Bharat Forge will acquire the commercial vehicle axle business of AAM India in Pune and Chennai, along with the Pune Engineering and Development Center.

The transaction is subject to approval from the Competition Commission of India (CCI) and will close only post that and fulfilment of other customary closing conditions.

"We look forward to relying on their technical expertise and existing relationships with various industry players to further scale-up the business over the medium to long term," Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge said.

AAM Chairman and CEO David Dauch said that the strategic decision to sell its commercial vehicle axle business in India will enable the company to strengthen its focus on ICE, hybrid and full electric passenger vehicle pickup truck and van applications globally and also provide financial flexibility.

Shares of Bharat Forge are trading 1.1% lower on Thursday at ₹1,458.9. The stock is still up 17% so far in 2024.