Mahindra and Mahindra Limited will be acquiring the stakes which it does not own in a new two wheeler joint venture with Peugeot.
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.
Executive Director and President of farm equipment and auto sectors Mahindra and Mahindra, Pawan Goenka said this is a strategic fit for the company.
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 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 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.