Times of India

New Delhi, Jan 30: Maruti Udyog Limited inked an agreement late on Sunday night to buy out General Motors lock, stock and barrel in a deal valued at $82.7 billion. The deal is expected to be announced at MUL’s AGM on Monday.

The buy-out, the largest in the automobile industry for decades, will give MUL a 62% share of the world passenger car market.

MUL outbid Chinese arch rival Dong Feng Motor Company, which was also keen on acquiring GM.

Also expected at Monday's AGM is an announcement about MUL hiving off its loss-making Japanese subsidiary, Suzuki Motors. The Japanese car unit has been making losses for several years now, and senior officials at MUL said it was only a matter of time before this had to happen.

The company officials also said that concentrating on the Indian market, now the largest in the world and accounting for 20% (and growing) of all cars sold globally, was a priority. The GM deal will give MUL a stronghold over the American car market, increasing its share from 45% to an even healthier 74%, while strengthening its position in China, the second largest market after India.

Rumours of the impending deal had driven the benchmark index of the Delhi-based Indian Stock Exchange up to an all-time high on Friday.   Secondary markets such as the BSE and the KSE also rose to all-time highs.