Mahindra Two Wheelers acquires 51% stakes in PMTC

Chennai: Mahindra Two Wheelers (MTWL), part of the US$ 6.5-billion Mahindra Group, and Peugeot Motorcycles (PMTC), part of the Euro 54 billion PSA Group based in France, on Tuesday announced that they have completed the necessary formalities for MTWL's 51% acquisition in PMTC.

PMTC (a.k.a. Peugeot Scooters), a key player in urban mobility in Europe for 116 years, is the oldest motorized two-wheeler manufacturer in the world.

Peugeot Scooters offers one of the most comprehensive range of scooters and mopeds, from 50cc to 400cc, including the successful three wheeled scooter - Metropolis - in the European market. This project was announced on October 7, 2014.

The acquisition, which resulted in the satisfaction of all regulatory, legal and financial conditions of the agreement, was completed smoothly by both parties within a very short span of time.

As part of the employee dialogue process and anti-trust law, the Works Council consultation process has also been successfully completed.

Pawan Goenka, executive director, Mahindra & Mahindra, said, "At Mahindra, we are committed to the long term growth of Peugeot Motocycles and are confident that this relationship would be one of mutual respect, trust and learning. This partnership would enable both MTWL and PMTC to 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".

Under the terms of the agreement, MTWL has infused euro 15 million into PMTC to finance projects implemented through the strategic partnership and has also bought shares held by PSA which would allow MTWL to take a 51% stake in PMTC.

The new board of PMTC has been constituted and would include Pawan Goenka (director MTWL & executive director, M&M), V S Parthasarathy (director MTWL, CFO, Group CIO, M&M) and Rajesh Jejurikar (director MTWL, chief executive,-Farm Equipment & Two Wheeler Division, M&M) from the Mahindra side and Maxime Picat - chief executive officer, Peugeot Brand and Emmanuel Delay - Executive Vice President, Operational Director, India-Pacific from the PSA side.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.