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yesterday

Mahindra Acquires Majority Stake in SML Isuzu to Expand Commercial Vehicle Market Share

The Rs 555 crore deal will double Mahindra's market share in the >3.5-tonne segment to 6% and awaits CCI approval for completion in 2025.

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Overview

  • Mahindra & Mahindra has finalized a Rs 555 crore deal to acquire a 58.96% stake in SML Isuzu, purchasing shares from Sumitomo Corporation and Isuzu Motors Ltd.
  • The transaction, priced at Rs 650 per share, includes a mandatory open offer under SEBI regulations at Rs 1,554.6 per share.
  • This acquisition will double Mahindra’s market share in the >3.5-tonne commercial vehicle segment from 3% to 6%, with plans to reach 10–12% by FY31 and 20%+ by FY36.
  • SML Isuzu, established in 1983, holds a 16% share in India’s ILCV bus segment and reported FY24 revenues of Rs 2,196 crore with an EBITDA of Rs 179 crore.
  • The deal is subject to Competition Commission of India approval and is expected to close before the end of 2025, with Kotak Investment Banking and Khaitan & Co advising Mahindra.