M&M forays into combine harvester biz with 35% buy in Finnish firm
Mahindra & Mahindra has acquired 35 per cent stake in Finland's Sampo Rosenlew for up to 18 million euros (about Rs 135 crore), marking its foray into the combine harvester business.
The deal is expected to close by June 30, 2016. "The acquisition of up to 35 per cent stake would be for a consideration of not exceeding 18 million euros," Mahindra & Mahindra (M&M) said in a regulatory filing on Thursday. Both will work in tandem to grow their combine harvester business globally, it added. "We are now putting in place a strategy to build a full product line of farm equipment that goes beyond tractors and with this we will compete globally in both advanced and developing markets," said Pawan Goenka, Executive Director of M&M.
At present, Mahindra is the world's leading tractor company by volume, with an on ground presence in India, the US, China and Japan, besides many other export markets. M&M Farm Equipment and two-wheeler President and Chief Executive Rajesh Jejurikar said: "Sampo Rosenlew will enable Mahindra to grow in the global combine harvester business. The two companies will work closely.”