Mahindra & Mahindra Acquires Majority Stake in SML Isuzu to Boost MHCV Market Share
Mahindra & Mahindra Ltd. (M&M) has announced a significant acquisition in the commercial vehicle segment. The company will acquire a majority stake in SML Isuzu Ltd., bringing a strong legacy and loyal customer base to complement its existing portfolio.
M&M will purchase a 58.96% stake in SML Isuzu for approximately ₹555 crore, at a price of ₹650 per share. This acquisition includes stakes from Sumitomo Corporation (43.96%) and Isuzu Motors (15%). The primary promoter of SML Isuzu, Arun Loomba, will also see a portion of his stake acquired by M&M.
In addition to this acquisition, M&M will make an open offer for an additional 26% of SML Isuzu's shares from eligible public shareholders. This strategic move aims to strengthen M&M's position in the medium and heavy commercial car (MHCV) segment, where it currently holds a 3% market share, significantly lower than its 52% share in the light commercial vehicle (LCV) segment.
Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sector at M&M, has expressed the company's ambition to double its MHCV market share to 10-12% by FY 2030-31 and more than 20% by FY 2035-36 through this acquisition.
With this acquisition, M&M seeks to leverage SML Isuzu's strong legacy and product portfolio to bolster its MHCV offerings. The company aims to significantly increase its market share in this segment, ultimately becoming a stronger player in the Indian commercial car industry.
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