Varroc Engineering and its wholly-owned subsidiary VarrocCorp Holding BV Netherlands have agreed to sell their four-wheeler lighting business to France’s Compagnie Plastic Omnium SE for 600 million euros, according to the company’s hint to the stock exchange.

The €600 million deal will see Varroc divest its lighting systems businesses in the US, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco. The company’s board of directors approved the proposed divestiture at its April 28, 2022, meeting.

The deal focuses on high-growth markets such as India, China, and two-wheeler and electric vehicle (EV) product lines. Varroc will also continue to operate its Chinese joint venture and other international two-wheeler businesses in countries such as Italy and Vietnam and its global electronics business in Poland and Romania. The company also retained its four-wheeler lighting business in Asia. The board also approved the establishment of a wholly-owned subsidiary in India to engage in research and development activities, the statement said