Indian automobile giant Mahindra Two Wheelers acquired 51% stage in Peugeot Motorcycles (PMTC) for 28 million euros. Peugeot motorcycles is part of France-based PSA Group which is valued at a total of 54 billion euros.
Under the terms of the agreement, Mahindra Two Wheelers Ltd. (MTWL) has infused 15 million euros into PMTC to finance projects implemented through strategic partnerships while it has also bought shares that were previously held by PSA, allowing the Indian motorcycle manufacturer to take 51 per cent stake in the French company.
For the completion of the agreement, Mahindra and Mahindra Executive Director, Pawan Goenka said that the company is committed towards long-term growth of Peugeot Motorcycles and that the relationship would mutually increase the trust, learning and development between both the companies.
The Mumbai-based Mahindra Two Wheelers had announced its acquisition in PMTC back in October 2014. Mr. Goenka also stated that the acquisition was completed very smoothly and in a short period of time.
The new board of PMTC has been formed with Pawan Goenka, V S Parthasarathy and Rajesh Jejurikar from Mahindra’s end while from PSA Maxime Picat will act as the Chief Executive Officer for the Peugeot Brand while Emmanuel Delay will act as the new company’s Executive Vice President and Operational Director, India-Pacific.
Peugeot has been a key player in urban mobility in Europe for 116 years, and is the oldest motorised two-wheeler manufacturer in the world.