Mahindra To Acquire 51% Stake In Peugeot Motorcycle By February, 2015

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Mahindra Two Wheelers launched its Gusto scooter in Mumbai last year. The Indian manufacturer is now going forward and launching it in several regional markets. They launched the Gusto on 7th January, 2015 in Bangalore.

The Indian manufacturer is having a decent run with its newly launched Gusto. Mahindra plans to introduce its much-awaited Mojo motorcycle in 2015. This will be their attempt at a single-cylinder big bike for Indian market.

Mahindra has made its intentions clear about acquiring the two-wheeler department of Peugeot. The Indian manufacturer will be a major stake holder by owning 51 percent shares in the French company. A total amount of 54 billion Euro would be raised to complete the acquisition.

The Indian manufacturer will finance current projects of Peugeot two-wheelers to boost their sales. They will also develop new products working together as a team. There are no plans currently to bring the Peugeot brand to India as a premium scooter offering.

There are a few hurdles in the acquisition and has pushed back the merger to early February or late January, 2015. There is some issue with documentation, which, once cleared, should open up the possibility of beginning operations.

Peugeot is one of the oldest two-wheeler manufacturer that began motorised transportation. They offer premium scooter around the world and will continue to do so. Their range include scooters from 50cc to larger capacities like 400cc scooters in certain markets.

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Story first published: Friday, January 9, 2015, 12:44 [IST]
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