Mahindra group on Monday announced it will acquire Italian automotive and industrial design firm Pininfarina for an overall outgo of over 50 million Euros (nearly Rs 370 crore) after months of negotiations. The acquisition is being carried out through a special purpose vehicle (SPV) and two group firms Tech Mahindra and Mahindra & Mahindra (M&M) will own 60 per cent and 40 per cent, respectively, in the Turin-based firm.
"As part of the agreement, Tech Mahindra and M&M will purchase 76.06 per cent of Pininfarina shares from the current controlling shareholders Pincar srL at a price of Euro 1.1 per share," Mahindra & Mahindra said in a BSE filing. The company said the cost of acquiring 76.06 per cent in Pininfarina by the SPV will be Euro 25.3 million.