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Honeywell buys Tata's stake in Indian JV

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CIOL Bureau
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BANGALORE: The Asian subsidiary of the $23 billion Honeywell International Inc., Honeywell Asia Pacific Inc., is buying the 40.62 percent stake of Tata Group's in the Indian joint venture- Tata Honeywell Limited.







The price will be Rs 350 per share. As a result of the transaction, Honeywell will be the majority shareholder in Tata Honeywell Limited. The transaction, expected to be completed this year, is subject to regulatory approval and certain other closing conditions.

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According to a statement, the Tata Group's decision is consistent with its overall strategy to divest non-core businesses. Founded in 1988, Tata Honeywell Limited is expected to continue as the supplier of process management and control system solutions to the Tata Group in the same manner as in the past.

"We have had an excellent and fruitful sixteen year relationship with Honeywell and wish our colleagues the best as Honeywell increases its ownership of the company, said KA Chaukar, Managing Director, Tata Industries Limited. "It is important to note that Tata Group companies have many other business relationships with Honeywell and these will continue as hitherto."

"Honeywell is committed to the continued growth of the process management and control systems business in India and expanding on the success we have had with Tata Group, said Ash Gupta, Country Manager and Managing Director of Honeywell International India. "Tata Honeywell was the first strategic business relationship between Honeywell and the Tata Group, and it has been a very fruitful and mutually beneficial endeavor. We look forward to continuing this success in other business relationships with them.

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