New Delhi: The 25-year long joint venture between the Hero group and the Honda group is set to come to an end, sources said. According to sources, the board of Hero Corp has approved the joint-venture termination.
Hero Corp will now acquire 26 per cent stake from Honda for $1-1.2 billion. The royalty likely to be paid is between Rs 2300 crore and Rs 2400 crore over three to four years. However the Hero Corp board has expressed concern on high royalty and asked the company to put margin protection plan in place.
Honda officials are likely to be in Delhi shortly to terminate the joint venture and the Hero Honda board will meet in Delhi on Thursday on Honda's exit. Hero Honda's deal with private equity players may be finalized post the board's nod.
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