Mahindra Takes Full Control of SML Isuzu to Boost MHCV Market Share
Mahindra & Mahindra has taken full control of SML Isuzu after acquiring the remaining 43.96% stake from Sumitomo Corporation. This strategic move aims to bolster Mahindra's presence in the medium and heavy commercial vehicle segment.
SML Isuzu, a joint venture between Sumitomo Corporation and Swaraj Mazda (now Mahindra & Mahindra), was once partly owned by Isuzu Motors. However, Isuzu sold its shares to Sumitomo in 2012, making Sumitomo the majority stakeholder with 43.96%. Mahindra & Mahindra, already a significant stakeholder, has now purchased the remaining shares from Sumitomo in 2023, giving it full control.
Mahindra plans to purchase the stake at ₹650 per share, with 43.96% from Sumitomo Corporation and 15% from Isuzu Motors. This acquisition is part of Mahindra's strategy to double its MHCV market share to 10-12% by FY 2030-31 and over 20% by FY 2035-36. SML Isuzu's strong legacy, loyal customer base, and credible product portfolio will complement Mahindra's existing offerings in the trucks and buses segment. The acquisition will cost Mahindra around ₹555 crore for nearly a 59% stake. Additionally, Mahindra will make an open offer for 26% from eligible public shareholders as per SEBI Takeover Regulations.
Mahindra & Mahindra's acquisition of the remaining stake in SML Isuzu signals its commitment to expanding its presence in the MHCV segment. With this move, Mahindra aims to enhance its market share and leverage SML Isuzu's strengths to further its growth in the commercial vehicle sector.
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