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2h ago

Mahindra & Mahindra Acquires 59% Stake in SML Isuzu for Rs 555 Crore

The strategic move aims to bolster M&M’s position in the heavy commercial vehicle market, doubling its market share in the segment and triggering a mandatory open offer.

Rajesh Jijurikar: "We are going to talk about how to get to 10 to 12% market share from this combined 6% today"
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Overview

  • M&M has formalized the acquisition of a 58.96% stake in SML Isuzu for Rs 555 crore at Rs 650 per share, pending regulatory approval.
  • The deal requires a SEBI-mandated open offer for an additional 26% stake from public shareholders at Rs 650 per share.
  • M&M’s stock rose 2.82% to Rs 2,945 per share on the NSE, while SML Isuzu shares fell 10% to Rs 1,590.05 on the BSE.
  • The acquisition is expected to double M&M’s market share in the >3.5-tonne commercial vehicle segment from 3% to 6%, with targets of 10–12% by FY31 and over 20% by FY36.
  • SML Isuzu, a joint venture between Sumitomo Corporation and Isuzu Motors, holds a 16% market share in light and medium commercial vehicles.