Mahindra & Mahindra Ltd's subsidiary has made a "binding offer" to acquire majority stake in Peugeot Motocycles of France for an undisclosed sum.
In a communication to the stock exchanges, M&M said that its unlisted subsidiary Mahindra Two Wheelers Ltd (MTWL) has made a binding offer to acquire a 51 per cent stake in Peugeot Motocycles which is part of the euro 54 billion PSA Group of France.
M&M said PMTC is a key player in urban mobility in Europe for 116 years and the oldest motorized two-wheeler manufacturer in the world.
The deal between MTWL and PSA is subject to Works Council consultation as part of the employee dialogue process and anti-trust law. It would involve pumping in Euro 15 million into PMTC to finance projects that were implemented through the strategic partnership and additional sale of shares by PSA allowing MTWL to acquire 51 per cent shareholding in PMTC, M&M said.
PTI reports: Commenting on the development, M&M Executive Director Pawan Goenka said: “The coming together of Mahindra and Peugeot is a win—win for the two—wheeler businesses of both companies. Mahindra would offer access to the Indian market, mass market product technology and competence in marketing while Peugeot brings premium range, a strong European footprint, and a globally recognised brand.”
This partnership would enable both MTWL and PMTC to speed up their international expansion by driving synergies and leveraging respective strengths of both parties, he added.
Over the past few years, Mahindra has strengthened its position in the two-wheeler segment globally. Mahindra Racing competes at the highest level of global motorcycle racing in the Moto3 category of MotoGP, while Mahindra GenZe recently revealed its electric two—wheelers in the US market that offer sustainable urban transport solutions to a new generation of US consumers.
The company had recently launched Gusto scooter. MTWL also has sales and distribution operations in Latin America, Africa and South Asia. It has assembly operations in many of these markets.