NCLT approves merger scheme of Suzuki Motor Gujarat with Maruti Suzuki India

Core Viewpoint - The National Company Law Tribunal (NCLT) has approved the merger of Suzuki Motor Gujarat with its parent company, Maruti Suzuki India, effective from April 1, 2025, which aims to enhance operational efficiencies and business synergies [1][5]. Group 1: Approval and Regulatory Aspects - The NCLT found the merger scheme beneficial for both companies, their shareholders, creditors, and employees, with no objections raised by the Income Tax Department or other statutory authorities [2][3]. - The approval process included a joint petition from both companies, which was initially filed in Ahmedabad and later transferred to the Principal Bench in New Delhi [7]. Group 2: Benefits of the Merger - The merger is expected to lead to focused growth, operational efficiencies, and improved business synergies by consolidating their operations [7][8]. - It will simplify the group structure by eliminating multiple entities, thereby enhancing agility and decision-making within the transferee company [8]. - The amalgamation aims to reduce administrative costs, share best practices, and improve performance indicators in manufacturing, ultimately maximizing shareholder value [9]. Group 3: Employee Transition - All employees of Suzuki Motor Gujarat will transition to Maruti Suzuki India as of the effective date of the merger [10]. Group 4: Corporate Structure and Ownership - Suzuki Motor Corporation, Japan, holds a 58.28% stake in Maruti Suzuki India as of March 31, 2025, indicating strong parent company support for the merger [11].