Mahindra acquires stake in Mitsubishi Agricultural Machinery

Mahindra & Mahindra Ltd. (M&M), part of the Mahindra Group announced that it has acquired 33 per cent stake in the Mitsubishi Heavy Industries Ltd owned Mitsubishi Agricultural Machinery Co. Ltd. (MAM). Mahindra group has invested $25 million or Rs 159 crore. The deal is expected to close by October 1, 2015. The agreement was signed by Kazuaki Kimura, President and CEO, MHI Machinery, Equipment & Infrastructure, Katsumi Tottori, President, MAM and Rajesh Jejurikar, President & Chief Executive (Farm Equipment & Two Wheeler), Mahindra & Mahindra Ltd. The announcement of the deal was done by Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd in Mumbai. The deal will help Mahindra to expand its reach in the Japanese market and currently the Indian manufacturer is fifth in the global list of agriculture and farm equipment market. 

Speaking on the alliance, Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd mentioned, “We have had a decade long association with Mitsubishi in USA where their products have played a significant role in Mahindra USA’s success. We are now excited about our participation through an equity route in Mitsubishi Agri Machinery, Japan. With this alliance we will focus on making aggressive investments in marketing and product development and becoming a significant player in the global Agri Machinery Industry.”