Mahindra To Acquire Peugeot’s Stake In Two Wheeler Joint Venture

By Sukesh

Mahindra and Mahindra Limited will be acquiring the stakes which it does not own in a new two wheeler joint venture with Peugeot.

Mahindra To Acquire Peugeot’s Stake In Two Wheeler Joint Venture

This new deal is worth Rs 196 crore. After the acquisition, Mahindra and Mahindra will be the owner of the new venture called as Mahindra Two Wheeler (MTW) Europe. This move by Mahindra comes after two years it acquired 51 percent of stakes from the French two wheeler company.

Mahindra To Acquire Peugeot’s Stake In Two Wheeler Joint Venture

Executive Director and President of farm equipment and auto sectors Mahindra and Mahindra, Pawan Goenka said this is a strategic fit for the company.

Mahindra To Acquire Peugeot’s Stake In Two Wheeler Joint Venture

From this deal, Mahindra will get benefited from Peugeot's product development, technology and styling. According to Goenka, it was a straightforward move from the company.

Mahindra To Acquire Peugeot’s Stake In Two Wheeler Joint Venture

Mahindra and Mahindra is leaning on a two-brand strategy. With scooters from French manufacturer Peugeot targeting the premium market, and its own models in the mass commuter segment.

Mahindra To Acquire Peugeot’s Stake In Two Wheeler Joint Venture

Mahindra had also speculated to expand the Peugeot two wheelers brand to emerging global markets. Peugeot is currently struggling in the European market with only 4 percent of global sales.

Mahindra To Acquire Peugeot’s Stake In Two Wheeler Joint Venture

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Article Published On: Wednesday, September 28, 2016, 18:48 [IST]
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