Mumbai: Hero Investments has agreed to buy Honda Motors Ltd's 26 per cent stake in Hero Honda Motors for around $851 million in a deal that will see the Japanese automaker exit its joint venture in India after more than 26 years.
Hero Investments is buying the stake at 739.97 rupees a share, it said in a statement.
Shares in Hero Honda fell more than 3 per cent following the news. The Hero Honda joint venture was India's largest motorcycle manufacturer with more than half the domestic market.
Honda also has a wholly owned subsidiary in India, which makes motorcycles and scooters.