Acquisitions27 Apr 2025, 02:16 am
Mahindra & Mahindra to Acquire 58.96% Stake in SML Isuzu for INR 555 Crore
AI Summary
Mahindra & Mahindra Ltd. (M&M) has entered into an agreement to acquire 58.96% stake in SML Isuzu Ltd. (SML) at INR 650 per share, amounting to INR 555 crore. This acquisition aims to strengthen M&M's position in the >3.5T CV segment, where it currently holds a 3% market share. SML, incorporated in 1983, is a listed company with a strong presence in the Trucks and Buses segment, reporting an operating revenue of INR 2,196 crore and EBITDA of INR 179 crore in FY24. The acquisition is expected to unlock value through synergies in cost, network, brand, manufacturing, talent, and product complementarities. The transaction is subject to the approval of the Competition Commission of India and is expected to complete within 2025.
Key Highlights
- M&M to acquire 58.96% stake in SML Isuzu for INR 555 crore
- SML is a listed company with a strong presence in the Trucks and Buses segment
- SML has a market leading position in the ILCV Buses segment with around 16% market share
- The acquisition is expected to unlock value through synergies in various areas
- The transaction is subject to the approval of the Competition Commission of India