Mahindra & Mahindra to acquire Australian aerospace firm: Report
11 October 2008
India's commercial vehicle major Mahindra & Mahindra group is reported to be in talks to acquire an Australian aerospace company, according to a report by the television channel UTVi.
The report said that the Mahindra and Mahindra group was looking to acquire the Australian aerospace company for undisclosed sum, and would pick up a majority stake.
Amongst the factors listed in the report that are propelling Mahindra and Mahindra in its desire to acquire the aerospace company are the fact that the target company already manufactures and supplies certified aircraft components to Airbus and Boeing, and that is it available at an attractive valuation on account of an ongoing slump in the Australian defense aerospace sector.
The report quoted Hemant Luthra, President -Systech, as saying that talks were in progress, and that the company has all the necessary licences and technology which the M&M group could use to manufacture components in India at half the cost. The group entered the aerospace sector in 2005 with its $10 million acquisition of Plexion Technology, a Bangalore-based aerospace technology company.