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Hero MotoCorp, India's largest two-wheeler manufacturer, will acquire certain assets of its American technical partner, Erik Buell Racing, for a consideration of $2.8 million. However, the Hero has announced that its wholly owned American subsidiaries HMCL NA, Inc. and HMCL Americas, Inc. have entered into an agreement with ERB to acquire the ownership of certain tangible and intangible assets ERB for a price of $2.8 million (Rs. 18 crores). In 2013, Hero MotoCorp acquired 49.2 percent stake in ERB about Rs. 148 crores to market its products in the US through the Erik Buell racing. Both the companies have also agreed to resolve all disputes and fully give mutual releases in terms of the Settlement Agreement for all subject matters which is in any way related to EBR.
The Hero MotoCorp stated that the performance of the settlement agreement will help the company's in-house R&D teams to explore the development of certain consulting projects, including the projects ERB was executing for Hero. In April 2015, the joint partner of Hero had filed for bankruptcy under chapter 128 with the Circuit Court in Wisconsin, US. The Hero MotoCorp and Eric Buell Racing had joined their hand in 2012, after the former's separation with the Japanese two-wheeler maker, Honda.
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The Hero MotoCorp said that the agreement is "contingent upon the approval by the Circuit Court and the approval of the board of directors of Hero MotoCorp authorising its joinder as a direct party to the settlement agreement on or before August 10, 2015".
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