Mahindra to acquire 51% stake in Peugeot Motorcycles

The transaction will involve infusion of Euro 15 million (about Rs 116 crore) into Peugeot Motorcycles (PMTS) to finance projects through the strategic partnership, and further sale of shares to enable Mahindra Two Wheelers (MTWL) to take a 51 per cent stake in PMTC.

“The coming together of Mahindra and Peugeot is a win-win for the two wheeler business of both companies. Mahindra would offer access to the Indian market, mass market product technology and competence in marketing while Peugeot brings premium range, a strong European footprint, and a globally recognized brand. This partnership will enable both MTWL and PMTC to speed their international expansion by driving synergies and leveraging respective strengths of both parties,” said Dr. Pawan Goenka, Executive Director, Mahindra and Mahindra.

Mahindra Two Wheelers is a subsidiary of Mahindra and Mahindra Limited and part of the US$ 16.5 billion Mahindra Group. Peugeot Motorcycles (PMTC) is part of the Euro 54 billion PSA Group based in France. PMTC is a key player in urban mobility in Europe for 116 years and is the oldest motorized two wheeler manufacturer in the world.

Under the terms of the agreement, MTWL will support PMTC’s global growth plan and brand 

building effort and PSA would support the brand and growth strategy by holding a minority share for a long term.  MTWL will be committed to the current leadership team at PMTC. This would be a similar approach the Mahindra group has followed in other global transactions such as the acquisition of Korean automaker SsangYong.