The 25 years long-term relationship between Hero and Honda is finally over. The board of Hero Corp has approved the joint-venture termination, reports CNBC-TV18’s Kritika Saxena, quoting sources.
It is learnt that Hero Corp will acquire 26% stake from Honda for USD1-1.2 billion. Sources also add that the royalty likely to be paid is Rs 2300-2400 crore over three to four years. However 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. The board of Hero Honda is likely to meet tomorrow on Honda’s exit.
Hero Honda's deal with private equity players may be finalised post the board’s nod.
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