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Mahindra and Mahindra buys Tractor arm from Mitsubishi

India’s largest tractor manufacturer, Mahindra & Mahindra announced a 33.33% stake purchase in Japanese tractor manufacturer Mitsubishi Agricultural Machinery (MAM). M&M will initially invest Rs 159 crore in MAM, for which it will receive a third of the voting rights. The acquisition will take place through an issuance of fresh shares and M&M will also get class ‘A’ shares.

Pawan Goenka, executive director, Mahindra & Mahindra, said MAM will bring in a lot of value and help M&M explore markets like eastern Eupore as Mitsubishi is a strong brand there.

“We are excited about participating through the equity route in Mitsubishi Agri Machinery. With this alliance we will focus on making aggressive investments in marketing and product development and becoming a significant player in the global agriculture machinery industry” added Goenka.

Both M&M and MAM have been collaborating for a decade - MAM used to supply tractors to M&M for the US market.

Kazuaki Kimura, President & CEO said, “I am sure the commitment and expertise of both the companies will open a new horizon to the business globally.” The acquisition will help M&M expand its tractor business to different geographies by leveraging Mitsubishi’s technology.

Source: Mahindra and Mahindra