M&M to acquire controlling stake in SML Isuzu for ₹555 crore to strengthen trucks and busses business

Mahindra & Mahindra Ltd., the Mumbai-based manufacturer of passenger and commercial vehicles, announced on Saturday, April 26, that it has signed an agreement to acquire a 58.96% stake in SML Isuzu Ltd., for a sum of ₹555 crore.

M&M will also make an open offer to acquire 26% stake from eligible public shareholders of SML Isuzu, in accordance with the SEBI takeover regulations, it said in an exchange filing.

As part of the transaction, M&M will acquire the entire 43.96% stake held by Sumitomo Corporation, the promoter of SML Isuzu, and also the 15% stake held by Isuzu Motors, designated as a public shareholder.

Through this acquisition, M&M intends to establish a strong presence in the commercial vehicle segment in excess of 3.5 tonnes. M&M currently has a 3% market share in this segment and this acquisition will double the same to 6%, the company said in a statement.

The plan is to further increase the market share to between 10% and 12% by financial year 2031 and to 20% by financial year 2036.

This is a developing story.