M&M to sell Finnish subsidiary Sampo Rosenlew to TERA for ₹52 crore

Mahindra & Mahindra will divest its Finnish arm Sampo Rosenlew Oy, maker of combine harvesters and forestry machines, to TERA for Rs 52 crore under a share purchase agreement

Mahindra & Mahindra (M&M), the world’s largest tractor maker by volume, on Monday said it would sell its Finnish combine harvester and forestry machines arm, Sampo Rosenlew Oy, to TERA for Rs 52 crore.

 

The company has entered into a share purchase agreement (SPA) with Tera Yatirim Teknoloji Holding Anonim Sirketi (TERA), under which it will sell its entire stake in Sampo Rosenlew Oy, a wholly owned subsidiary. Sampo reported net sales of €41 million in 2024. The announcement came after market hours. M&M’s stock ended the day marginally higher on the BSE.

 

The divestment ends M&M’s ownership of Sampo, which it had acquired as a wholly owned subsidiary. The transaction is expected to be completed on 6 October 2025, the company added.

 

The sale is in line with M&M’s strategic focus on long-term growth opportunities. The company is re-aligning its portfolio to concentrate on core business areas.

 

“By transitioning its ownership of Sampo to a new owner, the company believes it will enable Sampo to pursue new pathways for innovation and growth, building on its rich heritage and understanding of the Finnish market,” M&M said in a regulatory filing.

 

Founded in 1853, Sampo Rosenlew specialises in manufacturing combine harvesters and forestry machines and has made a meaningful contribution to the Mahindra group since joining it. The company played a key role in building M&M’s farm machinery capabilities. M&M had acquired a significant stake in Sampo in 2016 to enter the combine harvester segment and took full ownership in 2022.

 

While the idea was to scale Sampo’s technology into new geographies beyond Europe, the harvester market has remained volatile.