Mahindra & Mahindra completes buyout of Navistar stake in JVs
12 February 2013
Mahindra & Mahindra Ltd has completed the buyout of Navistar Group's stake in the two joint ventures, Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL).
M&M has bought the remaining 49-per cent stake in the joint venture with US-based Navistar International Corp, the two companies said in a statement released today. Financial details of the deal, however, are not available.
In a filing with the stock exchanges today, M&M said the buyout has received regulatory approvals and that it has taken full control of the operations. M&M said it would continue to sell MNAL and MNEPL products.
"Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra's truck and engine businesses continuing to play a critical role in helping us achieve this goal," M&M president - automotive and farm equipment - Pawan Goenka said.
Navistar had in December last year announced its intention to exit the joint venture as it increases focus on focus its core businesses in North America.
"Mahindra has been a valuable partner these last seven years and they are well equipped to move the MNAL and MNEPL businesses forward as the Indian market continues to develop," Navistar president and chief operating officer Troy Clarke said.
Navistar, however, would continue sourcing components from India while Mahindra would continue to provide engineering services to it.
"The Navistar group will continue to support Mahindra through licence agreements and extend necessary support to MNAL and MNEPL for purpose of business continuity," the companies said.