Pegatron Said to Be in Talks With Tata to Sell Its Only India iPhone Plant

Taiwanese contract electronics manufacturer and an Apple iPhone supplier Pegatron is in advanced negotiations to transfer control of its sole iPhone manufacturing facility in India to the Tata Group, a report by news agency Reuters said on Monday, citing two sources familiar with the matter. This move signifies Pegatron's latest scale back in its partnership with Cupertino headquartered Apple.

The report did not disclose the financial details of the ongoing negotiations.

Under the proposed agreement, which has Apple's approval, Tata intends to acquire at least a 65 per cent ownership stake in a joint venture responsible for operating the Pegatron plant near Chennai city in the southern Indian state of Tamil Nadu. Pegatron will offer technical assistance and retain the remaining ownership stake, as stated by one of the sources, the report added.

Tata, one of India's largest conglomerates, will oversee the joint venture through its Tata Electronics division, according to the second source, as mentioned in the report.