Honeywell to acquire Tata’s stake in Tata Honeywell

CIRCUIT EC / Mumbai

THE Tata group and Honeywell Asia Pacific, a subsidiary of Honeywell International, have announced an agreement for the sale of the Tata Group’s 40.62 percent in ownership interest in Tata Honeywell to Honeywell Asia Pacific. Tata Honeywell is a joint venture that is a leading process management and control systems provider. The price will be Rs 350 per share.

As a result of the transaction, Honeywell will be the majority shareholder in Tata Honeywell. The transaction, which is expected to be completed this year, is subject to regulatory approval and certain other closing conditions.

The Tata’s decision is consistent with its overall strategy to divest non-core businesses. Tata Honeywell is expected to continue as the supplier of process management and control system solutions to the Tata Group in the same manner as in the past. “We have had an excellent and fruitful 16-year relationship with Honeywell, and wish our colleagues the best as Honeywell increases its ownership of the company,” said K A Chaukar, managing director, Tata Industries. “It is important to note that Tata group companies have many other business relationships with Honeywell, and these will continue as before.”

“Honeywell is committed to the continued growth of the process management and control systems business in India, and expanding on the success we have had with the Tata group,” said Ash Gupta, country manager and managing director of Honeywell International India.