NCLT approves merger of Suzuki Motor Gujarat with parent Maruti Suzuki India: Here's all you need to know

Core Viewpoint - The National Company Law Tribunal (NCLT) has approved the merger of Suzuki Motor Gujarat into its parent company Maruti Suzuki India, with the appointed date for the transfer scheme set for April 1, 2025 [1][2]. Group 1: Merger Approval and Details - The NCLT's two-member bench found the merger scheme beneficial for both companies, their creditors, employees, and shareholders, and noted no impediments to sanctioning it [2][5]. - The merger will result in the immediate transition of all employees from Suzuki Motor Gujarat to Maruti Suzuki India as of the effective date [3]. - Statutory authorities, including BSE, NSE, RBI, and SEBI, did not raise any objections during the 30-day period following July 31, 2025 [4]. Group 2: Rationale and Benefits of the Merger - The companies indicated that the merger aims to consolidate their businesses for focused growth, operational efficiencies, and enhanced business synergies [7][9]. - The merger is expected to simplify the corporate structure by eliminating multiple entities in the same business, thereby improving agility and decision-making [9]. - The amalgamation will reduce administrative costs, enable sharing of best practices, and improve various performance indicators, ultimately maximizing shareholder value [10]. Group 3: Legal and Structural Implications - The NCLT's order states that the merger will be binding on both the transferor and transferee companies, along with their shareholders and creditors [8]. - Upon the merger's effectiveness, Suzuki Motor Gujarat will be dissolved without the need for a winding-up process, and it will surrender its GSTN and PAN to the relevant authorities [8]. - As of March 31, 2025, Suzuki Motor Corporation, Japan, held 58.28% of the paid-up share capital of Maruti Suzuki India [11].