Larsen & Toubro (L&T) has entered into a definitive agreement for the divestment of its entire stake in its unlisted and wholly owned subsidiary L&T Cutting Tools, to IMC International Metalworking Companies BV, owned by the Warren Buffett-led Berkshire Hathaway Inc.

This transaction involved structuring to accommodate working capital adjustment by way of deferred consideration within the permissible window of RBI, lengthy negotiations with IMC's commercial and legal teams, deep engagement with the Client's financial and operational teams to prepare its disclosure letter, etc. The transaction is expected to get closed within a month upon fulfilment of customary conditions precedent.

Link Legal team comprised of Manish Gupta (Partner), Alok Sonker (Associate Partner), Saiyam Chaturvedi (Senior Associate), and Keya Salot (Associate).