Varroc Engineering, along with its wholly-owned subsidiary VarrocCorp Holding B.V. Netherlands, have entered into agreement to sell its four-wheeler lightening business to France’s Compagnie Plastic Omnium SE for 600 million euros, according to company’s intimation to stock exchanges.
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The 600 million euro transaction will see Varroc divesting its lighting System operations in the USA, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco. The proposed divestment was approved by the Board of Directors of the Company in its meeting held on April 28, 2022.
The deal is to focus on high growth markets such as India, China and on two wheeler as well as electric-vehicle (EV) product lines. Varroc will also continue to operate its China joint venture and other international two-wheeler businesses in countries like Italy and Vietnam and global electronics businesses in Poland and Romania.
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The company is also retaining its four-wheeler lighting operations in Asia. The Board of Directors also gave its in-principle approval for the formation of a wholly-owned subsidiary in India for pursuing R&D activities, according to the statement.
