24Jan/110
Hero Honda Executes Licensing Agreement
Hero Honda Motors announced that it has executed a ultimate necessary licensing agreement with Japan’s Honda Motor Company. The Munjal family is put to acquire Honda Motors’ 26% stake in their combined venture Hero Honda Motors for around $1 billion or half the present value of the stake in the stock market. This final licensing agreement will clear the way for the Honda Motor Company to take off Hero Honda Motors. The agreement is void for the existing and new products that Hero Honda Motors will present in the Indian market once the sale of the Japanese firm’s portion to Hero Group is finished. The licencing agreement, which was executed last week, is in line with the Memorandum of Understanding (MoU) agreed by their particular boards of directors on 16th December, 2010, Hero Honda Motors said in a filing to the Bombay Stock Exchange.