ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Japan-Update

Tata, Docomo to settle $1bn legal dispute

Indian conglomerate will pay damages over end of joint venture

The Tata and Docomo brand names can be seen on the sign of this shop in Mumbai.

TOKYO -- India's Tata Group has agreed to pay Japan's NTT Docomo roughly $1.17 billion in connection with the end of a tie-up in the South Asian nation, potentially ending a lengthy legal battle.

Tata Sons, the conglomerate's holding company, will pay the full amount of damages sought by the Japanese mobile carrier. The deal could be announced as soon as Tuesday. The Reserve Bank of India must approve the settlement.

Docomo in 2009 paid 127.4 billion rupees ($2.45 billion at the time) for a 26% stake in Tata Teleservices. The Japanese carrier decided to end the alliance in 2014 amid intense competition in the Indian market, and called on Tata to either buy back Docomo's stake at 50% of the original purchase price or find another buyer, as per the pair's agreement.

But India's central bank, which regulates the trade of put options, rejected the agreement, calling a share sale at a preset price illegal. Docomo then brought Tata to an international arbitration court in London, charging that the Indian company had not upheld its obligation to find a buyer. The court agreed, ordering Tata to pay $1.17 billion in damages. The Indian company has refused until now, leading Docomo to seek the seizure of Tata assets in the U.K., U.S. and India.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends May 26th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media