Mahindra Two Wheelers Ltd (MTWL) and Peugeot Motorcycles (PMTC) have entered into a strategic partnership as was expected, reported earlier by us. According to the partnership deal, Mahindra Two Wheelers now owns 51 percent shares in Peugeot Scooters. Under the agreement, Mahindra Two Wheelers has invested Rs 114 crore to finance Peugeot's projects through strategic partnership.
Peugeot manufactures a comprehensive range of scooters and mopeds from 50cc to 400cc. Their line-up also including a three-wheeled scooter – the Metropolis, in the European market.
The two companies have been in talks about the partnership since October 2014. Speaking about the completion of the acquisition, Pawan Goenka, executive director, Mahindra & Mahindra Ltd, said, “At Mahindra, we are committed to the long-term growth of Peugeot Motorcycles and are confident that this relationship would be one of mutual respect, trust and learning. This partnership will enable both MTWL and PMTC speed up their international expansion by driving synergies and leveraging respective strengths. It is our intention to work closely to enable a win-win for both partners".