M&M''s Mahindra International throws its hat into the Eicher stake ring
05 Oct 2007
Mahindra International Ltd is interested in picking up a stake in Eicher Motors Ltd, media reports said on Friday 5 October, citing inside sources. Mahindra International is a subsidiary of Mahindra & Mahindra Ltd and Navistar''s International Truck and Engine Corp.
Earlier reports had indicated that Volvo was in advanced negotiations to buy a majority stake in Eicher, and that its offer of Rs675 ($17) a share had topped an offer of Rs500 a share from DaimlerChrysler.
Eicher had said in July that it was considering a strategic partnership. A statement from the company yesterday said it was evaluating prospects and was "in discussions with various potential partners". An alliance with a maker of heavy commercial vehicles would give Eicher expertise in engines and high-capacity trucks.
The promoters hold about 59 per cent in the company, while Mitsubishi Motors has 3.6 per cent. Both Mahindra and Volvo declined comment, though the latter has maintained that it is interested in a partnership with an Indian firm.
infrastructure and stricter emission and safety rules are fuelling a demand for
advanced trucks in India. The market is presently dominated by Tata Motors, with
Ashok Leyland in second place. While Ashok Leyland is planning a joint venture
with Japan''s Nissan Motor Co, local light trucks maker Force Motors has a joint
venture with Germany''s MAN AG.