Mumbai: Mahindra & Mahindra (M&M) is set to acquire the manufacturing assets of the China-based Jiangling Tractor for $8 million (approximately Rs 36 crore) marking the Indian company''s first overseas acquisition.

The acquisition will be made through a joint venture in which M&M will hold 80 per cent share holding. Jiangling plant manufactures 12,000 tractors a year, against M & M''s 80,000-per annum capacity.

An MoU was signed between M & M and the of the Chinese tractor company holding company, Jiangling Motor Corporation Group. The deal would be finalised subject to regulatory approvals. Earlier in 2003 M&M had lost out to US-based AGCO Corporation to acquire the Finnish tractor company, Valtra.