Mumbai: Mahindra and Mahindra Ltd (M&M) has completed its purchase of the Navistar group’s stake in Mahindra Navistar Automotives Ltd and Mahindra Navistar Engines Pvt. Ltd, the companies said in a joint statement on Tuesday.
The transaction has received regulatory approval in India and Mahindra has now taken complete ownership of operations and continues to sell Mahindra Navistar Automotives and Mahindra Navistar products.
The two companies had announced in December that M&M will buy out its US partner Navistar International Corp.’s 49% stake in two joint ventures for Rs.175 crore. M&M and Navistar set up a JV to manufacture trucks and buses in India, Mahindra Navistar Automotives in 2005. This was followed by another JV, Mahindra Navistar Engines in 2007.
M&M had a 51% stake and Navistar 49% in both the JVs. The two partners have invested a total of more than Rs.1,060 crore in the two JVs.
“Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra’s truck and engine businesses continuing to play a critical role in helping us achieve this goal,” said Pawan Goenka, president, automotive and farm equipment sectors, Mahindra and Mahindra. According to the agreement, Navistar would continue to source components from India and Mahindra to provide engineering services to Navistar. The Navistar group will support M&M through licence agreements and extend necessary support to both the entities for the purpose of business continuity.