Mahindra Acquires 59% Stake in SML Isuzu to Boost MHCV Market Share
Mahindra & Mahindra Limited (M&M) has announced a significant acquisition in the medium and heavy commercial vehicle (MHCV) segment. The company aims to strengthen its position in this world market by purchasing a substantial stake in SML Isuzu Limited.
M&M will acquire nearly 59% of SML Isuzu, including a 43.96% stake from Sumitomo Corporation and 15% from Isuzu Motors. The remaining 26% will be offered to public shareholders through an open offer, as per SEBI takeover regulations. The total acquisition cost is approximately ₹555 crore at ₹650 per share.
The acquisition of SML Isuzu brings a strong legacy and a loyal customer base to Mahindra. Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sector at M&M, highlighted the complementary product portfolio that SML Isuzu offers in the trucks and buses segment. Currently, M&M holds a 3% market share in the MHCV segment, and this acquisition is expected to significantly boost its presence in the stock market today.
M&M's ambitious goal is to double its market share in the MHCV segment to 10-12% by FY 2030-31 and further increase it to more than 20% by FY 2035-36 with this strategic move.
The acquisition of SML Isuzu by Mahindra & Mahindra Limited is a significant step towards expanding its market share in the MHCV segment. With a strong product portfolio and customer base, SML Isuzu is expected to complement Mahindra's offerings and help achieve its ambitious stock market targets.
