Japan's Honda buys out India car JV partner

Japan's Honda Motor Co has bought a 3% stake it did not already own in its Indian car unit from a localfirm in a deal worth Rs 180crore, ending a partnershipof more than 16 years. Usha International, part of India's diversified Shriram Group, said in a statement on Friday it sold its entire 3.16% stake, or 18 million shares, in the joint ventureto the Japanese partner forRs 100, including a non-compete fee. Usha's exit is symbolic of a growing trend of overseas manufacturers tearing up local partnerships in India and pumping billions of dollars into wholly-owned Indian units. The buyout completes a drawn-out separation between the two partners, which beganwhen Honda proposed a costly investment in diesel vehicle production facilitiesin India. Usha and Honda had been negotiating over the value of the Indian company's holding in the joint venture for the past few months. Last year, Honda sold its entire 26% stake in India's largest two-wheeler maker to the local partner - Hero