Maruti Suzuki, the country's largest automaker, announced on Oct 16 that its board of directors has approved a proposal to execute a share purchase agreement to acquire 100% of the equity capital of Suzuki Motor Gujarat (SMG) from parent Suzuki Motor Corporation (SMC). It has signed a share purchase and subscription agreement (SPSA) with SMC and SMG to acquire 12,84,11,07,500 Rs 10 shares, representing 100% of SMG's equity capital owned by SMC, for a total purchase consideration of Rs 12,841.1 crore, according to a regulatory filing.

The consideration payable by the company for such purchase of 100% of SMG's equity shares shall be discharged by way of issue and allotment of 1,23,22,514 equity shares of the company having face value of ₹5 each to SMC, at a price of Rs 10,420.85 per share, on a preferential basis, it added. Earlier this year, the company's board of directors approved the issuance of preferential shares to SMC as payment for the acquisition of a 100% stake in SMG. SMG would become a wholly-owned subsidiary of MSIL following the acquisition.

Maruti Suzuki's board of directors approved the termination of the contract manufacturing agreement with SMG and the acquisition of its shares at a price to be determined in accordance with all applicable laws and regulations on July 31, 2023.

Maruti Suzuki has stated that it will acquire its parent company SMC's Gujarat-based production facility in order to reduce complexity and bring all manufacturing-related activities in the country under one entity.