M&M completes purchase of Navistar stake in India JV

In Dec 2012, Navistar announced its intention to exit the JV as part of its strategy to focus on strengthening its North American core businesses

Mahindra & Mahindra (M&M) and Navistar International Corporation today announced that Mahindra has completed its purchase of the Navistar Group's stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Ltd (MNEPL).  Mahindra has now taken complete ownership of operations.

The deal has received regulatory approval in India and Mahindra continues to sell MNAL and MNEPL products.

In December 2012, Navistar announced its intention to exit the joint venture, as part of its strategy to focus on strengthening its North American core businesses and pursuing near term initiatives to improve the company's return on invested capital (ROIC) performance. As per the December 2012 announcement, the agreement allows Navistar to continue sourcing components from India, while Mahindra would continue to provide engineering services to Navistar.

Pawan Goenka, President, Automotive and Farm Equipment Sectors, M&M said that Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra's Truck and Engine businesses continuing to play a critical role in helping them achieve this goal.

"We thank Mahindra for their collaboration and appreciate their support in our decision to redirect our resources to other near-term opportunities for Navistar," said Troy Clarke, President and COO, Navistar.