Mumbai: Mahindra & Mahindra (M\&M) has completed the acquisition of a 58.96% controlling stake in SML Isuzu from Japan’s Sumitomo Corporation and Isuzu Motors, taking it a step closer to its ambition of expanding further in the commercial vehicle space. As part of the acquisition, the company has restructured the board of SML and announced plans to rename it SML Mahindra Ltd, subject to regulatory and shareholder approvals, it said in a statement.
The deal, announced in April, was executed at ₹650 per share, with a total transaction value of ₹555 crore. M\&M will also initiate a mandatory open offer to acquire up to 26% additional stake from public shareholders, in accordance with SEBI takeover regulations.
Following the acquisition, Mahindra has appointed Vinod Sahay, President – Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, as Executive Chairman of the company effective August 3. Venkat Srinivas has taken over as Executive Director and Chief Executive Officer from August 1. Both executives bring decades of experience in the automotive and engineering sectors and will continue to serve in their existing Mahindra roles alongside the new appointments, the company said.
The acquisition is aimed at strengthening M\&M’s position in the above-3.5 tonne commercial vehicle segment, where its market share currently stands at about 3%. The addition of SML’s portfolio is expected to double this to 6%, with a long-term goal of reaching 10–12% by FY31 and over 20% by FY36. M&M already commands over 54% share in the sub-3.5 tonne light commercial vehicle space.
Mahindra plans to build on SML’s strong brand equity and manufacturing capabilities to drive scale in a competitive CV market dominated by players like Tata Motors and Ashok Leyland. With the acquisition the company expects to get deeper product synergies and improve Mahindra’s ability to compete across weight categories in the commercial vehicle industry.
The deal, announced in April, was executed at ₹650 per share, with a total transaction value of ₹555 crore. M\&M will also initiate a mandatory open offer to acquire up to 26% additional stake from public shareholders, in accordance with SEBI takeover regulations.
Following the acquisition, Mahindra has appointed Vinod Sahay, President – Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, as Executive Chairman of the company effective August 3. Venkat Srinivas has taken over as Executive Director and Chief Executive Officer from August 1. Both executives bring decades of experience in the automotive and engineering sectors and will continue to serve in their existing Mahindra roles alongside the new appointments, the company said.
The acquisition is aimed at strengthening M\&M’s position in the above-3.5 tonne commercial vehicle segment, where its market share currently stands at about 3%. The addition of SML’s portfolio is expected to double this to 6%, with a long-term goal of reaching 10–12% by FY31 and over 20% by FY36. M&M already commands over 54% share in the sub-3.5 tonne light commercial vehicle space.
Mahindra plans to build on SML’s strong brand equity and manufacturing capabilities to drive scale in a competitive CV market dominated by players like Tata Motors and Ashok Leyland. With the acquisition the company expects to get deeper product synergies and improve Mahindra’s ability to compete across weight categories in the commercial vehicle industry.
