Mahindra & Mahindra has announced that it has received an irrevocable binding offer from European private equity major Mutares SE & Co to acquire 50 percent of equity and a controlling stake of 80 percent in Peugeot Motocycles (PMTC).
- Mahindra purchased Peugeot Motocycles from Groupe PSA in October 2019
- Transaction expected to be completed in the first quarter of 2023
Munich-based Mutares SE & Co KGaA is a listed private equity holding company with presence across Europe. The move will help Mahindra, who is looking to divest from non-core businesses, exit its European two-wheeler business – which it entered post acquiring 100 percent stake in Peugeot Motocycles from Groupe PSA in October 2019. Mahindra will remain co-shareholder to support new product launches and the strong growth expected in the coming years.
Peugeot Motorcycles, which manufactures two and three-wheeler scooters, generates revenues of approximately €140 million. The company has its own manufacturing facility in Mandeure, France, and has over 3,000 points of sale.
Rajesh Jejurikar, executive director, Auto & Farm Sectors, M&M, said, “Our efforts are directed towards sustaining this French legacy brand that has been delighting customers for 124 years. With an established track-record of transforming companies across Europe, coupled with their expertise in the automotive business, Mutares is an ideal partner to strengthen and grow the brand with continuing support from M&M”.
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