Tata Motors, India's largest automobile company and leader in commercial vehicles across segments  and Marcopolo S.A. ,one of the largest bus and coach manufacturers globally, have entered into a share purchase agreement.

The automobile leader will purchase the balance 49% shareholding in Tata Marcopolo Motors (TMML) for a cash consideration of Rs 999.6 million.

Tata Marcopolo Motors (TMML or JV), is a 51:49 JV formed in 2006 between Tata Motors and Marcopolo S.A.

Post the purchase, TMML will become a wholly owned subsidiary of the company. All technologies pertaining to existing bus body products manufactured will continue to vest with TMML.

In addition as part of the transition, Marcopolo S.A. will continue to license the "Marcopolo" trademarks to TMML for a minimum of three years with a non-compete provision in India for a corresponding period.

"The transaction will not result in any impact on TMML's operations or the continued sales and service of the Company's customers. Tata Motors, Marcopolo S.A. and TMML intend to maintain an open channel for future collaboration opportunities around bus body designs and technical consulting services, said Tata Motors.

 Shares of the company declined Rs 0.85, or 0.47%, to settle  at  Rs 181.65.  The total volume of shares traded  was  1,878,716 at  the BSE (Thursday).