Mahindra to buy 26% stake in defence JV with BAE Systems

Mahindra & Mahindra on Saturday said it will acquire 26 per cent stake in its defence joint venture with BAE Systems, ending their three-year partnership.

In a joint statement, they said they have decided to end their partnership in the Indian defence sector with M&M set to acquire a 26 per cent stake of its partner in the joint venture company Defence Land Systems India (DLSI).

In DLSI, Mahindra Defence Systems, a part of the Mahindra & Mahindra Group, has 74 per cent stake, while the global defence major had the remaining 26 per cent.

The joint venture company had plans of supplying artillery howitzers and anti-mine vehicles to the armed forces.

"Since the establishment in 2009 of the joint venture, DLSI, there has been significant evolution in the Indian land systems market.

"Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business," BAE Systems said.

"Following that review, it has been jointly agreed that Mahindra & Mahindra will acquire BAE Systems' 26 per cent shareholding in the entity.