Wabco and TVS Group Agree to Brakes Business Demerger

Wabco, a leading provider of vehicle electronic systems to the global commercial vehicle industry, and India’s TVS Group, who amongst other things produce and distribute automotive components and hardware, have announced their intention of transferring the brakes business of their Indian joint venture Sundaram Clayton Ltd (SCL) to a new wholly-owned subsidiary, WABCO-TVS (INDIA) Ltd., (WABCO-TVS) through a demerger plan.

The demerger of the brakes activity will result in two separate corporate entities. The non-brakes business and investments will remain with SCL, who are based in the Indian city of Chennai. The demerger plan is conditional upon securing the approval of the relevant stock exchanges, shareholders, creditors and the Madras High Court.