M&M to acquire 58.96% stake in SML Isuzu for ₹555 crore
Mahindra & Mahindra (M&M), one of India’s leading automobile manufacturers, has recently announced a major acquisition deal in the Indian automotive industry. The company has signed an agreement to acquire a 58.96% stake in SML Isuzu, a leading manufacturer of heavy vehicles, for ₹555 crore. This strategic move aims to strengthen M&M’s bus and truck business, and the company plans to increase its market share in the commercial vehicles segment significantly in the coming years.
According to the agreement, M&M will acquire the 58.96% stake in SML Isuzu through an open offer, which will be launched shortly. The open offer will provide an opportunity to all existing shareholders of SML Isuzu to sell their shares to M&M at a price of ₹555 per share. The acquisition is subject to regulatory approvals and is expected to be completed by the end of June 2023.
The acquisition of SML Isuzu is a significant development in the Indian automotive industry, and it is expected to have a major impact on the commercial vehicles segment. With this deal, M&M aims to strengthen its position in the market and increase its market share in the commercial vehicles segment. The company plans to increase its market share in this segment to 10% to 12% by FY2031 and to 20% by FY2036.
SML Isuzu is a leading manufacturer of heavy vehicles, including buses and trucks, and has a strong presence in the Indian market. The company has a wide range of products, including cargo trucks, tractor trailers, and luxury buses. With M&M’s acquisition, the company will gain access to SML Isuzu’s expertise and product range, which will help it to expand its offerings in the commercial vehicles segment.
The acquisition is also expected to create new opportunities for M&M in the electric vehicle (EV) segment. SML Isuzu has been expanding its presence in the EV segment, and M&M plans to leverage this expertise to develop its own range of EVs. The company has already announced plans to launch a range of EVs in the coming years, and the acquisition of SML Isuzu will provide it with the necessary expertise and technology to achieve this goal.
M&M’s acquisition of SML Isuzu is a strategic move to strengthen its position in the Indian automotive industry. The company has been expanding its presence in the commercial vehicles segment, and this deal will provide it with the necessary scale and expertise to achieve its goals. The acquisition is also expected to create new opportunities for M&M in the EV segment, and the company plans to leverage this expertise to develop its own range of EVs.
The acquisition of SML Isuzu is expected to have a positive impact on M&M’s financial performance. The company plans to achieve significant cost savings by integrating SML Isuzu’s operations with its own. The acquisition will also provide M&M with access to SML Isuzu’s existing customer base, which will help it to increase its sales and revenue.
The acquisition of SML Isuzu is a significant development in the Indian automotive industry, and it is expected to have a major impact on the commercial vehicles segment. The deal is a strategic move by M&M to strengthen its position in the market and increase its market share in the commercial vehicles segment. With this deal, M&M will gain access to SML Isuzu’s expertise and product range, which will help it to expand its offerings in the commercial vehicles segment.
In conclusion, M&M’s acquisition of SML Isuzu is a significant development in the Indian automotive industry. The deal is a strategic move by M&M to strengthen its position in the market and increase its market share in the commercial vehicles segment. The acquisition is expected to create new opportunities for M&M in the EV segment, and the company plans to leverage this expertise to develop its own range of EVs. With this deal, M&M will gain access to SML Isuzu’s expertise and product range, which will help it to expand its offerings in the commercial vehicles segment.
