M&M Finance to set up US finance arm with Rabobank subsidiary DLLFS
10 January 2011
Following RBI approval, Mahindra & Mahindra Financial Services Ltd, the finance arm of Mumbai-based automotive major Mahindra & Mahindra today said that it had entered into a joint venture with wholly-owned subsidiary of the Rabobank Group, De Lage Landen Financial Services Inc (the 'DLLFS').
DLLFS is a global provider of leasing, business and consumer finance solutions, including vendor finance and factoring.
M&M Financial and DLLFS plan to set up a joint venture, Mahindra Finance USA LLC, registered in US state of Delaware as a limited liability company, offering wholesale inventory financing to US-based dealers, finance dealer purchases of M&M products and to provide retail financing to end-user customers to finance their lease or purchase of Mahindra products or used products from dealers, in the US.
M&M will have a 49-per cent stake in the new venture, with the remaining 51 per cent being held by DLLFS.
The initial investment contemplated in Mahindra Finance USA LLC, is approximately $5.02 million.