Mahindra’s Purchase of SML Isuzu Gets CCI Approval
Important Points About the Purchase
The Competition Commission of India (CCI) has approved Mahindra & Mahindra’s plan to buy a 58.96% stake in SML Isuzu. This deal is valued at Rs 555 crore. The approval allows for a wider takeover bid under the rules of the Securities and Exchange Board of India (Sebi).
Official Announcements
The CCI mentioned:
- “The proposed deal involves Mahindra and Mahindra Ltd. acquiring SML Isuzu Ltd.”
On the social media platform X, the regulator stated:
- “CCI approves the proposed deal involving Mahindra and Mahindra Ltd. acquiring SML Isuzu Ltd.”
The Agreement
Mahindra revealed this deal in April. The company aims to purchase the entire 43.96% stake held by Sumitomo Corp and an additional 15% stake held by Isuzu Motors. The total cost for these stakes is Rs 555 crore.
After this, Mahindra will make an open offer for an extra 26% stake, following Sebi’s takeover code.
Strategic Decision
Mahindra, a top company in automobiles, farm equipment, and agri-services, views this move as part of its “capital allocation strategy.” This strategy focuses on investing in businesses with high potential and a proven record of operational excellence.
About SML Isuzu
SML Isuzu, founded in 1983, produces trucks and buses. According to Indian law, transactions above certain limits need CCI clearance to ensure they do not harm market competition.
