12 July 2004 – In a multi-million-dollar deal, Honeywell Asia Pacific Inc is to acquire Tata group’s 40.62 per cent stake in their joint venture Tata Honeywell Ltd, a process management and control systems provider, for Rs 350 per share.
Tata group and Honeywell Asia Pacific Inc, a subsidiary of Honeywell International Inc, on Friday signed an agreement for the sale transaction, amounting to over Rs 1.25bn ($27.38m), which is expected to be completed this year subject to regulatory approval and certain other closing conditions, the two companies said in a statement.
As a result of this transaction, Honeywell, which held a 41 per cent stake as at March 31, 2004, would become a majority shareholder in Tata Honeywell Ltd.
The Tata Group’s decision is consistent with its overall strategy to divest non-core business.
Tata Honeywell 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, it said.
Tata Industries Ltd managing director K A Chaukar said: “We have had an excellent and fruitful 16-year relationship with Honeywell and wish our colleagues the best as Honeywell increases its ownership of the company”.
It is important to note that Tata Group companies have many other business relationships with Honeywell and these will continue as hitherto, he added.
Honeywell International India country manager and managing director Ash Gupta said: “Honeywell is committed to the continued growth of the process management and control systems business in India”.