Mahindra & Mahindra offloads Sampo Rosenlew to TERA for €5 million, aiming for long-term growth

Mahindra & Mahindra Ltd. said 29 September it signed a definitive share purchase agreement with Turkey’s Tera Yatirim Teknoloji Holding Anonim Sirketi to divest its entire stake in Sampo Rosenlew Oy.

Sampo, based in Finland, is a wholly owned subsidiary of the Indian automaker and makes combine harvesters and forestry machines. The deal marks Mahindra’s exit from the Finnish agricultural equipment maker.

The transaction is expected to close by 6 October 2025. Upon completion, SAMPO will cease to be a wholly owned subsidiary of M&M.

The divestiture is aligned with Mahindra’s strategic vision to optimise its portfolio and focus resources on opportunities that best position the company for long-term success, M&M said in an official statement. By transitioning SAMPO’s ownership, M&M aims to enable the Finnish company to pursue new pathways for innovation and growth under TERA, building on its established legacy and expertise in the Finnish market, it added.

SAMPO recognised for its high-quality combine harvesters and forestry machines, employs approximately 200 professionals, M&M said in the official statement. In 2024, SAMPO reported net sales of approximately 41 million euros. For the year ended March 31, 2025, SAMPO’s revenue from operations, after eliminating intercompany transactions, stood at ₹370.98 crores, contributing 0.23% to M&M’s consolidated turnover.

As of March 31, 2025, SAMPO’s net worth stood at ₹182.02 crore, representing 0.24% of the consolidated net worth of M&M, excluding non-controlling interest. Following consolidation adjustments, SAMPO’s net worth as of Q2 FY26 is nil.

The consideration to be received by M&M from TERA for the transaction is EUR 5,000,000, approximately Rs. 52 crores at the prevailing foreign exchange rate.

SAMPO has contributed meaningfully to M&M since its acquisition, with several technologies developed by the Finnish company playing a pivotal role in strengthening Mahindra’s farm machinery capabilities. The divestiture is positioned as a move to unlock new growth opportunities for SAMPO, leveraging its heritage and market understanding under new ownership.

Disclaimer: The first draft of this article was produced from AI