M&M to acquire 58.96% stake in SML Isuzu for ₹555 crore
In a move to strengthen its bus and truck business, Mahindra & Mahindra (M&M) has signed an agreement to acquire a 58.96% stake in heavy vehicle maker SML Isuzu for ₹555 crore. The acquisition is expected to give M&M a significant foothold in the commercial vehicle market and help the company achieve its goal of increasing its market share in the sector.
According to the agreement, M&M will acquire the 58.96% stake in SML Isuzu through an open offer, which will be launched soon. The offer price has been set at ₹415 per share, which is 16.5% higher than the current market price of SML Isuzu. The open offer is expected to receive an overwhelming response, given the significant premium being offered.
The acquisition is expected to have a positive impact on M&M’s business, particularly in the commercial vehicle segment. SML Isuzu is a well-established player in the market, with a strong presence in the bus and truck segment. The company has a diverse product portfolio, including buses, trucks, and special application vehicles.
M&M, on the other hand, has been looking to strengthen its presence in the commercial vehicle market. The company has been expanding its product portfolio in recent years, and the acquisition of SML Isuzu is seen as a strategic move to increase its market share in the sector.
The acquisition is expected to help M&M achieve its goal of increasing its market share in the commercial vehicle market. The company plans to increase its market share to 10% to 12% by FY2031 and to 20% by FY2036. The acquisition of SML Isuzu is expected to be a significant step towards achieving this goal.
The deal is also expected to have a positive impact on SML Isuzu’s business. The company has been facing challenges in recent years, including a decline in demand for its products. The acquisition by M&M is expected to provide SML Isuzu with the necessary resources and support to scale up its operations and expand its product portfolio.
The acquisition is subject to regulatory approvals, including approval from the Competition Commission of India (CCI) and the Securities and Exchange Board of India (SEBI). The deal is expected to be completed by the end of the current fiscal year.
In a statement, M&M said, “The acquisition of SML Isuzu is a strategic move to strengthen our presence in the commercial vehicle market. We believe that SML Isuzu has a strong product portfolio and a talented team, and we look forward to working with them to achieve our goals.”
The acquisition is seen as a significant development in the Indian commercial vehicle market, and it is expected to have a positive impact on the industry as a whole. The deal is expected to increase competition in the market, which is likely to benefit consumers in the long run.
In conclusion, the acquisition of SML Isuzu by M&M is a significant development in the Indian commercial vehicle market. The deal is expected to strengthen M&M’s presence in the market and help the company achieve its goal of increasing its market share. The acquisition is also expected to have a positive impact on SML Isuzu’s business, and it is likely to provide the company with the necessary resources and support to scale up its operations and expand its product portfolio.
