Mahindra and Mahindra Ltd, today announced that its subsidiary Erkunt Traktor Sanayi AS (Erkunt), will acquire the Agricultural Machinery business of Hisarlar Makina Sanayi ve Ticar and Anonim Şirketi (Hisarlar), also a subsidiary of the company. In a reverse agreement, Mahindra Overseas Investment Company (Mauritius) Limited (MOICML), a wholly-owned subsidiary of the Company, and Erkunt have agreed to sell their entire 94.3% stake in Hisarlar, for a total consideration of 6.6 million Turkish liras (equivalent to approximately INR 5.6 crore).
As part of the restructuring of its subsidiaries in Turkey, Mahindra Group will withdraw from Hisarlar’s metal fabrication business. During this time, Erkunt will acquire the Agricultural Machinery business of Hisarlar, including certain related assets, intellectual property and trademark use rights. The Mahindra Group, through Erkunt, will continue to invest in the core business of agricultural machinery products, ranging from tillage to post-harvest segments. In addition, Erkunt will acquire certain cabin manufacturing assets from Hisarlar.
Commenting on the transaction, Hemant Sikka, President of the Farm Equipment Sector, M&M Ltd. said, “Through this transaction, we have retained the primary business of agricultural machinery and all intellectual property built over the years. This makes Erkunt Traktor a full range farm. OEM of equipment, ensuring that our dealers in Turkey and our customers in Europe and other international markets continue to be served. This is in line with our capital allocation and in perfect harmony with our goal of “Transforming agriculture, enriching life”.
Mahindra continues to establish itself as a global tractor manufacturer with a full range of agricultural machinery businesses through acquisitions and new manufacturing units, underpinned by the required brand and sales infrastructure, as well as by leveraging its global network for product development.
For over 3 decades, Mahindra has been the unprecedented No.1 tractor brand in India and the world’s largest tractor manufacturer by volume. With a presence in more than 50 countries, Mahindra has bet on its quality, as the only tractor brand in the world to win both the Deming Award and the Japanese Quality Medal.
The shares of Mahindra & Mahindra Ltd. were last trading in BSE at Rs. 756.8 from the previous close of Rs. 755.05. The total number of shares traded during the day was 56,060 in over 2,484 trades.
The action hit an intraday high of Rs. 761.7 and an intraday low of 751.45. The net turnover during the day was Rs. 42,353,965.