Mahindra to sell controlling stake in Peugeot Motocycles

    Despite the sale, Mahindra will remain co-shareholder for the coming years.

    Published On Nov 11, 2022 12:01:00 PM

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    Mahindra to sell controlling stake in Peugeot Motocycles
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    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).

    1.  Mahindra purchased Peugeot Motocycles from Groupe PSA in October 2019
    2.  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.

    "The closing of the transaction is expected in the first quarter of 2023 after consultation of the works councils and is subject to approval of the antitrust authorities," Mahindra said in a statement. 

    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”.

    Would you have liked Mahindra to bring some Peugeot models down to India? Let us know in the comments.

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