Mahindra Two Wheelers Acquires 51% Stake in Peugeot Motocycles

Mahindra Two Wheelers Ltd and Peugeot Motorcycles announced today that they have completed the necessary formalities for Mahindra's 51% acquisition in Peugeot.

As we know that Peugeot Scooters offers a comprehensive range of scooters and mopeds, from 50cc to 400cc and this means that Mahindra will have access to all these developments. The acquisition, which resulted in the satisfaction of all regulatory, legal and financial conditions of the agreement, was completed smoothly by both parties within a very short span of time. As part of the employee dialogue process and Anti-trust law, the Works Council consultation process has also been successfully completed.

Speaking on the completion of the acquisition, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd. said, "At Mahindra, we are committed to the long term growth of Peugeot Motocycles and are confident that this relationship would be one of mutual respect, trust and learning. This partnership would enable both MTWL and PMTC to speed up their international expansion by driving synergies and leveraging respective strengths. It is our intention to work closely to enable a win-win for both partners".

Under the terms of the agreement, Mahindra Two Wheelers has infused Euro 15 million into Peugeot to finance projects implemented through the strategic partnership and has also bought shares held by PSA which would allow Mahindra to take a 51% stake.