M&M to acquire 58.96% stake in SML Isuzu for ₹555 crore
In a significant move to strengthen its bus and truck business, Mahindra & Mahindra (M&M) has announced that it has signed an agreement to acquire a 58.96% stake in heavy vehicle maker SML Isuzu for ₹555 crore. This acquisition is expected to have a significant impact on the commercial vehicle market, with M&M aiming to increase its market share to 10% to 12% by FY2031 and 20% by FY2036.
The acquisition process will involve an open offer to the existing shareholders of SML Isuzu, where M&M will offer ₹1,245 per share to acquire additional shares. The open offer is expected to start on October 12, 2022, and close on October 26, 2022. The acquisition is subject to regulatory approvals and is expected to be completed by the end of FY2023.
SML Isuzu is a leading manufacturer of heavy commercial vehicles, including trucks and buses, and has a presence in the Indian market for over three decades. The company has a strong brand reputation and a wide distribution network, which will complement M&M’s existing bus and truck business.
The acquisition is expected to benefit both companies in several ways. For SML Isuzu, the acquisition will provide access to M&M’s vast resources and expertise, which will help the company to improve its operations and increase its market share. For M&M, the acquisition will help the company to strengthen its position in the commercial vehicle market and increase its market share.
M&M’s bus and truck business has been growing steadily over the years, driven by increasing demand for commercial vehicles in the Indian market. The company’s bus business has been particularly strong, with its brands such as the Mahindra Supro and the Mahindra Blazo being popular among customers. The acquisition of SML Isuzu will help M&M to expand its product offering and geographic presence in the commercial vehicle market.
The Indian commercial vehicle market is highly competitive, with several players vying for market share. However, M&M’s acquisition of SML Isuzu will give the company a significant boost, enabling it to compete more effectively with other players in the market. The acquisition will also help M&M to increase its revenue and profitability, as the company will have access to SML Isuzu’s existing distribution network and customer base.
The acquisition of SML Isuzu is also expected to create synergies for M&M, as the company will be able to leverage SML Isuzu’s expertise in the heavy commercial vehicle market. M&M will be able to use SML Isuzu’s technology and manufacturing capabilities to improve its own products and increase its efficiency.
In conclusion, the acquisition of SML Isuzu by M&M is a significant development in the Indian commercial vehicle market. The acquisition will help M&M to strengthen its position in the market and increase its market share. It will also provide SML Isuzu with access to M&M’s vast resources and expertise, which will help the company to improve its operations and increase its market share.
