Bharat Forge Expands Footprint with Acquisition of AAM India Manufacturing

Bharat Forge Ltd. announced the signing of a final agreement to purchase AAM India Manufacturing Corporation Pvt. Ltd., a subsidiary of American Axle & Manufacturing Holdings. The purchase will be completed at an enterprise value of ₹544.5 crore, pending final adjustments before closing.

AAM India Manufacturing Corporation produces axles for various types of commercial trucks and passenger buses in India, including light, medium, and heavy-duty vehicles. Following this transaction, Bharat Forge will take over AAM India's commercial vehicle axle business in Pune and Chennai, as well as the Pune Engineering and Development Center.

Approval from the Competition Commission of India (CCI) is required for the transaction to close, along with meeting other standard closing conditions.

"We look forward to relying on their technical expertise and existing relationships with various industry players to further scale-up the business over the medium to long term," Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge said.

AAM Chairman and CEO David Dauch said that the strategic decision to sell its commercial vehicle axle business in India will enable the company to strengthen its focus on ICE, hybrid and full electric passenger vehicle pickup truck and van applications globally and also provide financial flexibility.