Mahindra has acquired motorcycles manufacturer BSA Company for 34 lakh pound (Rs 28 crore). The UK-based company was bought by Mahindra with 100 percent stake in the holdings.
The move comes after speculation earlier this year that Mahindra was in the process of acquiring the BSA Company known for their classic motorcycles. Mahindra was looking to buy either Norton or BSA, now, it has chosen BSA over Norton.
Mahindra in a statement released said, its subsidiary Classic Legends Pvt. Ltd. (CLPL) has on October 21, 2016 acquired 100 percent of the share capital of the BSA Company limited. The subsidiary has purchased all 1.2 lakh shares at price of Rs 2,611.46 per share.
Mahindra further said that this acquisition will enable CLPL to acquire and obtain license of the BSA brand and will use the same for marketing and distribution of motorcycles globally.
The UK-based BSA company has itspresence in Japan, Singapore, Malaysia, USA, Mexico, and Canada.
Last year, Mahindra had acquired 51 percent stake in Peugeot Motocycles (PMTC), which is part of the euro 54 billion France-based PSA Group. Mahindra is yet to reveal what it plans to do with the two-wheeler manufacturer.
The homegrown company has been on an acquiring spree which includes 76.06 percent controlling stake in Pininfarina for $28 million under its Tech Mahindra arm.
Mahindra also acquired South Korean automaker SsangYong and two-wheeler brand, SYM from Kinetic to initiate its Mahindra Two Wheeler.
The company has even electric vehicle segment under its umbrella with the acquisition of Reva Electric Car Company. The Reva now known as E2O was recently launched with the four-door version and the company has been confident about its electric vehicle venture.