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Ashok Leyland acquires stake in UK based bus maker
30 July 2010: Ashok Leyland (ALL) has acquired 26 per cent stake in Optare, a UK based bus manufacturer.
The long-term strategic co-operation will involve an investment of $7.5 million (approx Rs 34.5 crore) and is expected to support ALL's efforts to accelerate technology, new product development and address new markets.
Optare has close to 34% market share in the UK, where it competes with players such as WrightBus and Alexander Dennis. This strategic alliance will be a critical part of ALL's global bus programme that is currently under development. It has a capacity to produce 1,100 units per annum.
ALL will have access to Optare's technology, including a modern range of mid-size and full-size city buses, which will appeal to several global markets, according to sources.
Source: Economic Times