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NSK Steering Systems to be renamed Rane Steering Systems after RHL buy out
Industry News- Jul 03,24
Despite the change in ownership, the company will maintain its existing technology license and supply agreements with NSK Steering & Control, Inc.
Rane Holdings Ltd (RHL) said its board has approved the acquisition of the remaining 51% stake from the joint venture partner Japan-based NSK Ltd in Rane NSK Steering Systems Pvt Ltd.
The consolidation of shareholding in the company will cost Rane Holdings Rs 450 million, payable in cash to NSK for acquiring 9.12 million shares of Rs 10 each in the company.
Following the acquisition, the company will become a wholly-owned subsidiary of Rane Holdings Ltd and will be renamed Rane Steering Systems Private Ltd (RSSL), pending necessary approvals, according to a statement. Despite the change in ownership, the company will maintain its existing technology license and supply agreements with NSK Steering & Control, Inc.
“We deeply value the relationship with NSK over the past two and half decades which helped us to create a strong position in the Indian automotive steering market. This acquisition further expands our group’s expertise in the steering systems,” said Harish Lakshman, Chairman of Rane Group.
Rane NSK JV, which recorded a turnover of Rs 17.19 billion in 2024, was carrying financial burden in the past 5 years due to a persistent warranty issue, which had impacted the financial performance of the company. The company had to set aside approximately Rs 5 billion for warranty provisions, of which Rs 4.72 billion has already been disbursed, leaving about Rs 280 million remaining.
(Source: Hindu BusinessLine)
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NSK Steering Systems to be renamed Rane Steering Systems after RHL buy out
Despite the change in ownership, the company will maintain its existing technology license and supply agreements with NSK Steering & Control, Inc.
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