Last Updated:
NCLT has approved the merger of Suzuki Motor Gujarat and Maruti Suzuki India. This merger, which will be implemented from April 1, 2025, will improve Maruti’s operational efficiency, group structure and cost management. All employees will become part of Maruti Suzuki without any change.
New Delhi. The country’s largest car manufacturer Maruti Suzuki India has got a big legal clearance. The National Company Law Tribunal (NCLT) has approved the merger of Suzuki Motor Gujarat with its parent company Maruti Suzuki India. The Delhi-based Principal Bench of NCLT, while accepting the joint petition of both the companies, said that this merger is in the interest of shareholders, employees and all stakeholders.
NCLT said in its order that this merger scheme will be considered effective from April 1, 2025. According to the order, no separate liquidation process will have to be done to liquidate Suzuki Motor Gujarat. NCLT said that all the concerned institutions like Income Tax Department, Official Liquidator, RBI, SEBI, BSE and NSE have not filed any objection to this merger, hence the scheme is approved.
Merger will help in reducing expenses and speeding up decisions.
The company said in its petition that this amalgamation will improve business growth and operational efficiency. The merger of the two companies will simplify the group structure, eliminate duplicate administrative costs and speed up the decision-making process. This will also maximize the value of shareholders. According to the company, after the merger, better utilization of technical, financial and manpower resources between the two organizations will be possible. Besides, indicators like ‘Vehicle per Hour’ and ‘Direct Pass Rate’ in manufacturing will also improve.
Employees will not be affected
Post merger, all employees of Suzuki Motor Gujarat, who are on the payroll of the company before the effective date of the merger, will automatically be considered employees of Maruti Suzuki India. This means that no one’s job will be affected in this process.
Japan’s Suzuki will play a big role
Maruti Suzuki India’s parent company Suzuki Motor Corporation, Japan, currently holds 58.28 percent stake in the company. According to the order of NCLT, this merger will be fully implemented in 2025 and the name of Suzuki Motor Gujarat will be removed from the Registrar of Companies.
position of shares
Shares of Maruti Suzuki India closed at Rs 15,490 on Friday with a rise of 0.25. After the arrival of this news, a big movement can be seen in the shares of Maruti. Let us tell you that so far this year this share has increased by more than 38 percent. At the same time, shares of India’s largest car manufacturer have given returns of more than 122 percent in 5 years.
