L&T to acquire Komatsu stake in joint venture

Mumbai: Larsen and Toubro will acquire the 50 per cent stake held by Komatsu Asia & Pacific in L&T-Komatsu Ltd (LTK).

Komatsu Asia & Pacific is a wholly-owned subsidiary of Komatsu Ltd, Japan.

L&T declined to furnish details of the transaction and said the value was insignificant. L&T holds the balance stake.

Komatsu is the largest manufacturer of hydraulic excavators and has manufacturing and marketing facilities worldwide.

With this buy-out, LTK will become a wholly owned subsidiary of L&T.

L&T Komatsu will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said.

L&T will continue to extend marketing, sales and product support in India for the Komatsu range of products.

L&T started the Bangalore unit to make hydraulic excavators in 1975. It inked the joint venture in 1998.

The Bangalore facility comprises machinery and hydraulic works. The products manufactured at L&T-Komatsu are supplied to domestic and overseas customers.