Mahindra & Mahindra (M&M) on Saturday announced plans to acquire a 58.96% stake in SML Isuzu for Rs 555 crore. The move aims to expand its footprint in the commercial vehicle space.
As part of the deal, M&M will purchase 43.96% of SML Isuzu shares from promoter Sumitomo Corporation and an additional 15% stake held by Isuzu Motors Ltd, a public shareholder of the company. In addition, M&M will launch an open offer for a 26% stake in line with SEBI’s Takeover Regulations.
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In an official statement, the company said the acquisition is in line with Mahindra Group’s long-term growth vision.
“This marks a significant milestone in our ambition of delivering 5x growth in emerging businesses,” said Anish Shah, CEO & MD of the Mahindra Group. He added that the deal reflects M&M’s capital allocation strategy of focusing on high-potential growth areas backed by operational excellence.
Rajesh Jejurikar, Executive Director & CEO – Auto and Farm Sector, called the acquisition a “pivotal step” towards becoming a full-range commercial vehicle player.
“SML brings with it a loyal customer base, a strong legacy, and a product portfolio that complements our own. Together, we can unlock synergies through platform consolidation, shared suppliers and networks, and improved plant utilisation,” Jejurikar noted.
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Founded in 1983, SML Isuzu has a strong presence in the Indian truck and bus market and has built a solid brand over decades. The acquisition is subject to approvals from the Competition Commission of India (CCI) and is expected to be completed within 2025.
With this deal, Mahindra looks to strengthen its position in the commercial vehicle sector — an area where it has traditionally had a limited market share compared to peers.
(With PTI Inputs)
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