Tata Sons and Citigroup's Mauritius investment arm, emerged as the top buyers in the 5.34% stake sold by Daimler in Tata Motors.
In a media statment released by Daimler on Tuesday, it said that it is in an excellent position to capitalise on the growth potential of the Indian auto market. "An equity participation of Daimler in Tata is therefore no longer necessary," the statement said. The company in its statement further said that the decision has been made in full consultation with Tata and that relation between the two companies are excellent and will not be adversely affected by this sale.
In the nineties, Daimler had a JV with the Tatas for distributing its Mercedes Benz cars. It later bought out the Tatas from the venture and Mercedes has been penetrating the Indian market in a strong way. In the first two months of this year, it almost doubled its sales to a total of 800 cars.
