M&M bets on plan to acquire SML Isuzu

Mumbai: Mahindra & Mahindra on Monday said the proposed Rs 555 crore acquisition of SML Isuzu is a strong strategic fit for the company that would put it in a strong position. The company also said that with this buyout, it sees lots of opportunities around cost, platform synergy, aggregates and other areas of operations, especially network and supplier synergy. M&M last week announced it will acquire 58.96 per cent stake in commercial vehicle maker SML Isuzu. As part of the transaction, M&M would acquire the entire stake of 43.96 per cent held by Sumitomo Corporation, promoter of SML, and separately buy a 15 per cent stake held by Isuzu Motors Ltd, public shareholder of SML, for an aggregate consideration of Rs 555 crore.

Besides, the automaker will make an open offer to acquire a 26 per cent stake in SML Isuzu in accordance with SEBI Takeover Regulations, Mahindra & Mahindra (M&M) said in a statement.