Tractor and Farm Equipment Ltd will acquire the tractors, engines and gears divisions of Eicher Motors for Rs 310 crore (Rs 3.1 billion). The all-cash deal will be signed over the next 2-3 weeks.
The Eicher Motors board gave its approval to the sale today. Tafe will use internal accruals as well as borrowings to fund the acquisition, though company officials said the details were still being worked out.
On its part, Eicher Motors is close to acquiring a US-based engineering service company for $2.5 million.