Hero Investments has agreed to buy Honda Motors Ltd's 26 percent 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, reflecting a nearly 50-percent discount to Tuesday's trading price. Shares in Hero Honda fell more than 3 percent following the news. "People are fearing that because of the low price, the company would be compensating Honda with higher royalty," an analyst with a local brokerage told Reuters, declining to be named.
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