Mahindra Two Wheelers Ltd. (MTWL), an unlisted subsidiary of Mahindra & Mahindra Limited and a part of the USD 16.5 billion Mahindra Group, has made an offer to acquire a 51 percent stake in Peugeot Motocycles (PMTC), which is a part of the Euro 54 billion PSA Group based in France.
Peugeot Scooters (PMTC), a key player in urban mobility in Europe for the past 116 years, is the oldest motorized two-wheeler manufacturer in the world. Peugeot Scooters offer one of the widest ranges of scooters and mopeds, ranging from 50cc to 400cc, including the very successful three wheeled scooter - the Metropolis, in the European market.
The business between MTWL and PSA, subject to Works Council consultation, as a part of the employee dialogue process and the antitrust law, would involve infusion of Euro 15 million into PMTC to finance projects implemented through the strategic partnership, and further sale of shares by PSA which would allow MTWL to take hold 51 percent stake in PMTC.
Pawan Goenka, the Executive Director of Mahindra & Mahindra, speaking about the development, said that the coming together of Mahindra and Peugeot is a win-win situation for the two wheeler businesses of both the companies.
Mahindra would offer access to the Indian market, mass market product technology and competence in marketing while Peugeot brings their premium range, a strong European footprint, and also a globally recognized brand. This partnership would enable both the companies to speed up their international expansion.
In the past few years, Mahindra has strengthened its position in the two wheeler segment globally. Mahindra Racing competes at the highest level of motorcycle racing in the world, the Moto3 category of MotoGP, while Mahindra GenZe recently revealed its electric two wheelers in the US market.
Also, MTWL has come up with several other innovative technologies that include the recently launched GUSTO. The company also has sales and distribution operations in Latin America, Africa and South Asia. The company has assembly plants in many of these markets.