Mahindra Two Wheelers Ltd. (MTWL), part of the USD 16.5 billion Mahindra Group, and Peugeot Motocycles (PMTC), part of the Euro 54 billion France-based PSA Group, announced that they have completed the necessary formalities for MTWL’s 51 percent acquisition in PMTC.
PMTC is a key player in mobility in Europe for 116 years, and is the oldest two-wheeler manufacturer in the world. It offers comprehensive range of scooters and mopeds, from 50cc to 400cc, including the three-wheeled scooter – Metropolis – in the European market.
Speaking on the completion of the acquisition, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd., said, “At Mahindra, we are 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."
Under the terms of the agreement, Mahindra Two Wheelers has infused Euro 15 millions 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.
The newly constituted board of PMTC has three representatives from MTWL while two from PSA Group.