)
Mahindra Two Wheelers (MTWL), part of the Mahindra & Mahindra group, announced today that they have completed the necessary formalities for the 51% acquisition in France-based Peugeot Motocycles (PMTC)
The Mumbai-based firm made a binding offer in October last year to buy the French scooter maker for Euro 13 million (Rs 100 crore), along with a commitment of Euro 15 million (Rs 115 crore) for product development in the debt-free company. In return, MTWL will get access to the French company's product technology and the opportunity to tap into Peugeot's European footprints.
PMTC (a.k.a. Peugeot Scooters), is a key player in urban mobility in Europe for 116 years and is also the oldest motorised two-wheeler manufacturer in the world. Peugeot Scooters' range comprises scooters and mopeds, from 50cc to 400cc.
The acquisition, which resulted in the satisfaction of all regulatory, legal and financial conditions of the agreement, was completed smoothly by both parties within a very short span of time. As part of the employee dialogue process and Anti-trust law, the Works Council consultation process has also been successfully completed, a statement from M&M said.
Pawan Goenka, Executive Director, Mahindra & Mahindra said, "At Mahindra, we are committed to the long term growth of Peugeot Motocycles and are confident that this relationship would be one of mutual respect, trust and learning. This partnership would enable both MTWL and PMTC to speed up their international expansion by driving synergies and leveraging respective strengths. It is our intention to work closely to enable a win-win for both partners".
Ends
