M&M buys 33% in Mitsubishi’s arm

Mumbai, May 21

Mahindras today acquired 33 per cent stake in farm machinery arm of Mitsubishi Heavy Industries for $25 million and would look at jointly developing products for global markets in the tractor and agri-equipment space.

While cementing its decade-long marketing and sales association in the US with Mitsubishi, Mahindra and Mahindra (M&M) is also looking to improve cost efficiencies and develop new products through this deal.

M&M will invest 3 billion yen or $25 million (about Rs 158 crore) to buy 33 per cent stake in Mitsubishi Agricultural Machinery, an arm of Tokyo-headquartered Mitsubishi Heavy Industries, with voting rights.

The deal will be completed through fresh issue of common shares and class A (non-voting) shares and is expected to be completed by October, while the new funding will be used to increase capital base of the Japanese company, M&M executive director Pawan Goenka told reporters here. — PTI