Hyundai Motor India has drafted a term sheet that outlines the fundamental terms and conditions for the possible acquisition of the General Motors factory located in Talegaon, Maharashtra. To clarify, a term sheet is a document that establishes the initial terms and conditions that must be met for an investment to proceed.
Hyundai's term sheet covers their plan to purchase land, buildings, and specific manufacturing equipment at the GM's plant in Talegaon. However, the acquisition is subject to fulfilling conditions precedent, receiving regulatory approvals from the government authorities and stakeholders, and the signing of the ‘Definite Asset Purchase Agreement’.
Recently, even Mahindra displayed its interest in acquiring the same facility from General Motors. Last year, in a similar approach, Tata Motors acquired the Sanand plant of Ford India for Rs. 725.7 crore.