Mahindra & Mahindra to Acquire 59% Stake in SML Isuzu for MHCV Market Push
Mahindra & Mahindra is set to acquire a significant stake in SML Isuzu, aiming to bolster its presence in the medium and heavy commercial vehicle (MHCV) segment. The acquisition, valued at around ₹555 crore, will see Mahindra gain nearly a 59 per cent stake in the company.
The deal involves Mahindra purchasing a 58.96 per cent stake at ₹650 per share from Sumitomo Corporation, the primary promoter of SML Isuzu. Additionally, Mahindra will acquire a 15 per cent stake from Isuzu Motors. The acquisition is subject to regulatory approvals and customary closing conditions.
Mahindra's strategic move is driven by its ambition to double its market share in the MHCV segment. Currently holding a 3 per cent share, Mahindra aims to reach 10-12 per cent by FY 2030-31 and more than 20 per cent by FY 2035-36. Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra, highlighted SML Isuzu's strong legacy, loyal customer base, and credible product portfolio as key attractions for the acquisition.
With the acquisition of approximately 59% of SML Isuzu, Mahindra is poised to strengthen its market position in the MHCV segment. The deal, valued at around ₹555 crore, will see Mahindra make an open offer in accordance with SEBI Takeover Regulations. Upon completion, Mahindra will look to leverage SML Isuzu's strengths to achieve its ambitious market share targets in the MHCV segment.
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