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It's finally splitsville for HeroWarburg Pincus, Kohlberg Kravis & Roberts ( KKR), TPG, Bain Capital and Carlyle.
"The PEs will take between 50-60 % stake in this entity , giving them just under 15% stake in the main company Hero Honda, which would soon sport a new name," the sources said.
Hero Honda, credited with putting the Indian middleclass on wheels, defied its humble beginnings to quickly emerge as the world's biggest two-wheeler maker, also ending the stronghold of Bajaj scooters in the country.
Tech, spares major irritants
Hero Honda's lowcost and highly-fuel efficient bikes (remember the classic 'Fill it, Shut it, Forget it' campaign ) quickly emerged as the most-popular and convenient mode of transport, catapulting the company into the global league of two-wheeler biggies.
However, it was the rising differences between the two partners that gradually emerged as an irritant. Differences had been brewing for the last many years over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts business with Honda's new fully-owned subsidiary Honda Motors IndiaHero, Honda split terms finalized - The Times of India Hero, Honda split terms finalized - The Times of India
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"The PEs will take between 50-60 % stake in this entity , giving them just under 15% stake in the main company Hero Honda, which would soon sport a new name," the sources said.
Hero Honda, credited with putting the Indian middleclass on wheels, defied its humble beginnings to quickly emerge as the world's biggest two-wheeler maker, also ending the stronghold of Bajaj scooters in the country.
Tech, spares major irritants
Hero Honda's lowcost and highly-fuel efficient bikes (remember the classic 'Fill it, Shut it, Forget it' campaign ) quickly emerged as the most-popular and convenient mode of transport, catapulting the company into the global league of two-wheeler biggies.
However, it was the rising differences between the two partners that gradually emerged as an irritant. Differences had been brewing for the last many years over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts business with Honda's new fully-owned subsidiary Honda Motors IndiaHero, Honda split terms finalized - The Times of India Hero, Honda split terms finalized - The Times of India
Mods: Please delete it if it has already been posted
Positive news..
another question, who will service the Hero Honda Bikes, Hero or Honda ????? 
lol.. Whoever has the majority stake.. It may also be possible that institutional investors may take some of the chunk.. If Hero has the majority then Hero, if Honda then it might want to merge it's divisions..
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