Mahindra Completes 51% Stake Acquisition in Peugeot Motorcycles

New Delhi: Mahindra Two Wheelers on Tuesday completed the 28 million-euro (around Rs 200 crore) acquisition of a 51 per cent stake in Peugeot Motorcycles (PMTC), a part of the 54 billion-euro France-based PSA Group.

Under the terms of the agreement, Mahindra Two Wheelers Ltd (MTWL) has infused 15 million euros into PMTC to finance projects implemented through the strategic partnership and has also bought shares held by PSA which would allow MTWL to take a 51 per cent stake in PMTC.

Mahindra & Mahindra executive director Pawan Goenka said the company is committed to the long-term growth of Peugeot Motorcycles and are confident that this relationship would be one of mutual respect, trust and learning.

"This partnership would enable both MTWL and PMTC to speed up their international expansion by driving synergies and leveraging respective strengths. It is our intention to work closely to enable a win-win for both partners," he added. 

The Mumbai-based firm had announced to acquire stake in PMTC in October last year.

"The acquisition, which resulted in the satisfaction of all regulatory, legal and financial conditions of the agreement, was completed smoothly by both parties within a very short span of time," the company said.

As part of the employee dialogue process and anti-trust law, the Works Council consultation process has also been successfully completed, it added.

The new board of PMTC has been formed with Mahindra's Mr Goenka, V S Parthasarathy and Rajesh Jejurikar being a part of it. From PSA, Maxime Picat, chief executive officer of the Peugeot Brand, and Emmanuel Delay, executive vice president-operational director India-Pacific are part of the board.

PMTC, a key player in urban mobility in Europe for 116 years, is the oldest motorised two-wheeler manufacturer in the world. It offers a range of scooters and mopeds, from 50cc to 400cc, including the three wheeled scooter - Metropolis - in the European market.