Business

Mahindra to acquire nearly 59% of SML Isuzu for Rs 555 crore

Mahindra & Mahindra Ltd. has announced its strategic move to acquire approximately 59% stake in SML Isuzu for Rs 555 crore, purchasing shares at Rs 650 each. This acquisition includes Sumitomo Corporation's 44% stake and Isuzu Motors' 15% stake, triggering a mandatory open offer for public shareholders.

NEW DELHI: Mahindra & Mahindra Ltd on Saturday said it has entered into an agreement to acquire almost 59% stake in heavy-vehicle maker SML Isuzu (SML) at Rs 650 per share, which will entail an outlay of Rs 555 crore. As part of the transaction, M&M would acquire the entire stake of nearly 44% held by Sumitomo Corporation, promoter of SML, and separately also acquire a 15% stake held by Isuzu Motors , public shareholder of SML. M&M would launch a mandatory open offer to acquire up to 26% stake from public shareholders of SML in accordance with SEBI regulations.

The acquisition will double market share to 6%, with a plan to increase this to 10-12% by FY31 and 20% by FY36, the firm said. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials.

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