J. Sagar Associates (JSA) recently advised Sitemi Sospensioni S.p.A., a wholly-owned subsidiary of its client Magneti Marelli S.p.A., to set up a 50:50 Joint Venture (JV) with Talbros Automotive Components Ltd. (TACL), a Faridabad based company.
Sitemi Sospensioni is engaged in the business of design, manufacturing and sale of automotive suspension modules and components. The deal involved contentious structuring issues, particularly in view of the business to be transferred by TACL to JV and frequent changes in the Foreign Direct Investment policy. TACL has a significant presence in the auto component manufacturing space in the country.
The JSA team that led the deal comprised of Partner – Upendra Nath Sharma, Senior Associate – Pallavi Puri, Associates – Purab Saagar Saini, Kaustubh George and Udhav Gulati
The JV is expected to be operational by middle of 2012.