The India based Multinational company, Mahindra group has acquired the Italian auto design firm Pininfarina SpA on Decemeber 2015. Tech Mahindra and Mahindra & Mahindra have jointly signed this agreement. The all cash deal of this acquisition is expected to be nearly 65 million US dollars.
Key Features of the Acquisition:
- Tech Mahindra and Mahindra & Mahindra(M&M) formed 60:40 partnership in this acquisition.
- They shall purchase 76.06% of Pininfarina shares from the current controlling shareholder Pincar Srl.
- They will also inject 20 million euros into Pininfarina through a rights issue.
- It will provide a guarantee worth up to 114.5 million euros to the car designer’s lenders, creditors and lessors.
- The Italian company has been loss-making for years partly because carmakers have brought design in-house rather than hire independent design firms.
- Mahindra has a reputation for buying undervalued companies. In 2010, it bought troubled South Korean automaker Ssangyong Motor and last year it acquired a majority stake in France-based Peugeot’s loss-making scooter business.
About Mahindra Group:
- Mahindra Group is an Indian multinational conglomerate headquartered at Mahindra Towers in Mumbai, India.
- They have an operational presence in over 100 countries and employ more than 200,000 people.
- They divided their industries into tractor division (M&M) and technical division (Tech Mahindra).
- M&M is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors across the world.
