Mahindra set to buy stake in Spain firm
New Delhi, June 16, 2013
Mahindra and Mahindra (M&M), an Indian automobile manufacturer, announced yesterday it was acquiring a 13.5 per cent stake in Spanish car component company CIE Automotive.
The announcement of the "multi-structured" cross-holding equity deal caps two years of talks between the Indian equipment-to-aerospace conglomerate and the Spanish company.
M&M said it will invest 94.24 million euros ($125.72m) through its subsidiaries for a 13.5pc stake in CIE Automotive SA at a price of six euros per share.
In turn, M&M, the flagship company of the $15.9 billion Mahindra Group, will sell stakes in three group firms - Mahindra Forgings, a listed unit of Mahindra, Mahindra Hinoday Industries and Mahindra Composites.
The Mahindra units supply such items as gears, steel and engineering services to Indian and foreign car makers.
In recent years, Mahindra, led by 57-year-old group chairman Anand Mahindra and grandson of the company's co-founder, has been striving to be a global player and now controls South Korean car maker Ssangyong Motor Company.
Last month, M&M said it aims to invest some 75 billion rupees ($1.3 billion) in its business over the coming three years. - Reuters