Mahindra Group units gain on Spain's CIE Automotive deal

MUMBAI (Reuters) - Stocks of Mahindra Group units rose on Monday after it agreed to sell a majority stake in its auto component unit to CIE Automotive SA for about $116 million, while also buying a stake in the Spanish auto parts maker.

As part of a complex deal announced on Saturday, Mahindra Group will merge all its auto components businesses into its Mahindra Forgings unit, which will be renamed Mahindra CIE Automotive.

Spanish auto components maker CIE will hold 51 percent and Mahindra will own about 20 percent. The rest will be held by institutional and public shareholders.

Separately, Mahindra & Mahindra has agreed to acquire a 13.5 percent stake in CIE for 94.24 million euros.

 

Mahindra Forgings rises 2.8 percent, while Mahindra & Mahindra shares gained 2.2 percent.

(Reporting by Rafael Nam; Editing by Anupama Dwivedi)