New Delhi: Mahindra Two Wheelers Tuesday completed the 28 million euro acquisition of 51 percent stake in Peugeot Motocycles (PMTC), a part of the euro 54 billion France-based PSA Group.
Under the terms of the agreement, Mahindra Two Wheelers Ltd (MTWL) has infused euro 15 million 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 percent stake in PMTC.
Commenting on the completion of the acquisition, Mahindra & Mahindra Executive Director, Pawan Goenka said, the company is committed to the long-term growth of Peugeot Motocycles 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 Goenka, V S Parthasarathy and Rajesh Jejurikar being a part of it. From PSA, Maxime Picat, Chief Executive Officer, 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.