Mahindra takes an old French turn, buys 51% stakes on Peugeot Motocycles
Mahindra And Mahindra two wheelers has announced that it has made a binding offer to acquire a 51% stake in Peugeot Motocycles (PMTC).
PMTC is part of the Euro 54 billion PSA Group based in France and 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, Mahindra says in a press release.
The deal is subject to Works Council consultation, as part of the employee dialogue process and anti-trust law and would involve infusion of Euro 15 million into PMTC to finance projects implemented through the strategic partnership, and further sale of shares by PSA which would allow Mahindra two-wheelers to take a 51% stake in PMTC.
About this deal Executive Director of Mahindra & Mahindra Pawan Goenka said, “Mahindra would offer access to the India market, mass market product technology and competence in marketing while Peugeot brings premium range, a strong European footprint, and a globally recognized brand. This partnership would enable both Mahindra two-wheelers and PMTC to speed their international expansion by driving synergies and leveraging respective strengths of both parties”.
In last few years there has been a steep decline in the European market and the new partnership would enable Peugeot Scooters “to diversify its business base and speed its international expansion," Peugeot Scooters said according to a report in the Reuters.
Mahindra two-wheelers would support PMTC’s global growth plan and the brand building effort that enriches the "Frenchness" of the Peugeot brand. PSA would support the Brand and growth strategy by holding a minority share for a long term.
The company has announced that Mahindra two-wheelers would be committed to the current leadership team at Peugeot.