NCLT clears merger of Suzuki Motor Gujarat with Maruti Suzuki India

Core Viewpoint - The National Company Law Tribunal (NCLT) has approved the merger of Suzuki Motor Gujarat Pvt Ltd (SMG) with Maruti Suzuki India Ltd (MSIL), which is expected to consolidate the operations of the Japanese carmaker in India and enhance manufacturing capabilities [1][5]. Group 1: Merger Approval - The NCLT sanctioned the scheme of amalgamation on October 31, with an appointed date set for April 1, 2025 [1][5]. - The tribunal noted that the merger is in the interest of both companies, their shareholders, creditors, and employees, with no objections from statutory authorities such as the Income Tax Department, RBI, Sebi, BSE, and NSE [1][5]. Group 2: Strategic Benefits - The merger aims to simplify the group structure, eliminate duplication of administrative functions, and enhance operational synergies [2][5]. - It is expected to improve manufacturing efficiency, reduce costs, and accelerate decision-making within Maruti Suzuki's operations [5]. Group 3: Employee Transition - All employees of SMG will transition to Maruti Suzuki India upon the merger's effective date [1][5]. Group 4: Ownership Structure - Suzuki Motor Corporation currently holds 58.28% of MSIL's paid-up share capital [5].