ITP, November 12, 2022, 11:50 a.m. IST
Image credit: Benoit Tessier/Reuters
Germany-based Mutares SE & Co will acquire a majority 80 percent stake in Mahindra & Mahindra’s French unit Peugeot Motocycles.
In a statement, the Mumbai-based automaker said on Thursday that Mutares had submitted an irrevocable binding offer to acquire 50 percent of the shares and an 80 percent majority stake in France-based Peugeot Motocycles (PMTC).
As part of the deal, Purple, a wholly owned entity of Mutares Holding, would invest €7 million in PMTC, entitling it to a 50 percent shareholding and 80.01 percent voting rights in the firm. French.
Mahindra & Mahindra (M&M) said it remains the co-shareholder to support new product launches and expected strong growth in the coming years.
Closing of the transaction is expected in the first quarter of 2023 after consultation with works councils and is subject to approval by antitrust authorities, it added.
Upon completion of the transaction, PMTC and its units Peugeot Motocycles Italia, PMTC Engineering and Peugeot Motocycles Deutschland GmbH would cease to be subsidiaries of Mahindra Two Wheelers Europe Holdings (MTWEH).
PMTC, based in Mandeure, France, generates revenues of around €140 million. It manufactures two- and three-wheel scooters that are distributed in 3,000 points of sale through subsidiaries, importers and distributors in France and internationally, on three continents.
The company has a manufacturing plant in Mandeure, a joint venture with JNQQ (Jinan Qingqi Motorcycle Co, Ltd.) in China, as well as manufacturing partnerships with several major Asian players, including THACO in Vietnam.
Commenting on the deal with Mutares, M&M, Auto & Farm Sectors CEO Rajesh Jejurikar said the company’s efforts are aimed at maintaining the French heritage brand that has been delighting customers for 124 years.
“With an established track record of transforming businesses across Europe, coupled with his experience in the automotive business, Mutares is an ideal partner to strengthen and grow the brand with continued support from M&M,” he added.
Mutares CIO Johannes Laumann said this is the company’s 13th acquisition in 2022.
“Peugeot Motocycles is an internationally recognized brand built on a rich history as the world’s oldest motorized two-wheeler manufacturer.
“I strongly believe that we will be able to unlock the true potential of the company based on our vast industry experience and strong operating team, along with our partner M&M,” he said.
Furthermore, Peugeot Motocycles acts as an original equipment manufacturer (OEM) and Mutares sees enormous potential for strong synergies arising within its automotive and mobility segment, Laumann added.
In October 2014, M&M had announced that it would acquire 51 percent of PMTC’s shares for €28 million. The acquisition was completed in January 2015.
In 2019, M&M announced that its subsidiary MTWEH will acquire all of PMTC for an undisclosed amount.
Mutares, a listed private equity holding company based in Munich, acquires medium-sized companies in special situations, based in Europe, that show significant potential for operational improvement and are resold after undergoing a repositioning and stabilization process.