Mahindra 2-Wheelers has invested 15 million Euros into Peugeot Motorcycles that will be used to finance projects implemented through the partnership.
First announced in October last year, Mahindra 2-Wheelers has officially completed all the necessary formalities for the 28 million Euro acquisition of 51 percent stake in Peugeot Motorcycles. The acquisition was completed in a short span of time with the satisfaction of all regulatory, legal and financial conditions of the agreement. In addition, the Anti-trust law and the Works Council consultation process has been successfully completed as part of the employee dialogue process.
The oldest motorised two-wheeler maker in the world, Peugeot has a 116 year old history and offers a comprehensive range of scooters from 50cc to 400cc. The acquisition will give Mahindra access to the technological expertise of the French manufacturer that be used for mutual benefits. Speaking on the occasion, Mahindra Executive Director Pawan Goenka stated that the partnership will help to speed up the company’s international expansion by driving synergies and leveraging respective strengths.
As per the terms of the agreement, Mahindra has invested 15 million Euros into Peugeot Motorcycles that will be used to finance projects implemented through the strategic partnership. The Indian manufacturer has also bought shares held by Peugeot which would allow Mahindra to take 51 percent stake in the French company. With the partnership in place, the development process on scooters will see a major changes with more powerful products expected for the Indian market.