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Mahindra Two-Wheelers to buy 51 pct in Peugeot Motorcycles for euro 28 mn
PTI | Mumbai | Updated: Oct 07 2014
Mahindra Two-Wheelers, a fringe player in the domestic market, today signed a pact to acquire 51 per cent stake for euro 28 million (about 217 crore) in Peugeot Motorcycles, part of the euro 54 billion French auto major PSA Group.
"Under the binding offer, Mahindra Two-Wheelers would infuse 15 million euros into Peugeot Motorcycles to finance projects implemented through strategic partnership, and further sale of shares by PSA, which would allow us to take 51 per cent stake in Peugeot Motorcycles," M&M executive director Pawan Goenka told reporters here.
Mahindras will also invest another euro 13 million at a later stage. The transaction is subject to the Works Council consultations as part of the employee dialogue process and anti-trust law, he said, but added that "we hope to close the deal in three months".
Peugeot is well known for its four and two-wheelers in Europe and is the world's oldest two-wheeler maker. However, its two-wheeler business has been undergoing a turnaround.
PTI | Mumbai | Updated: Oct 07 2014
Mahindra Two-Wheelers, a fringe player in the domestic market, today signed a pact to acquire 51 per cent stake for euro 28 million (about 217 crore) in Peugeot Motorcycles, part of the euro 54 billion French auto major PSA Group.
"Under the binding offer, Mahindra Two-Wheelers would infuse 15 million euros into Peugeot Motorcycles to finance projects implemented through strategic partnership, and further sale of shares by PSA, which would allow us to take 51 per cent stake in Peugeot Motorcycles," M&M executive director Pawan Goenka told reporters here.
Mahindras will also invest another euro 13 million at a later stage. The transaction is subject to the Works Council consultations as part of the employee dialogue process and anti-trust law, he said, but added that "we hope to close the deal in three months".
Peugeot is well known for its four and two-wheelers in Europe and is the world's oldest two-wheeler maker. However, its two-wheeler business has been undergoing a turnaround.
CONTINUE AT FINANCIAL EXPRESS INDIAMahindras would support the French company's global growth plan and the brand building effort that enriches the "Frenchness" of the Peugeot brand. PSA would support the Brand and growth strategy by holding a minority share for a long term, Jejurikar said.