Mahindra & Mahindra To Acquire 58.96 Per Cent Stake In SML Isuzu For Rs 555 Crore

Mahindra & Mahindra clarified that the proposed transaction, including the open offer, is subject to clearance from the Competition Commission of India (CCI).

The process is expected to be completed within 2025 in compliance with SEBI Takeover Regulations.

Source : Mahindra

In a major move to strengthen its position in the commercial vehicle market, Mahindra & Mahindra (M&M) announced plans to acquire a 58.96 per cent stake in SML Isuzu for a total consideration of Rs 555 crore.

The Mumbai-based automaker detailed that it would purchase the entire 43.96 per cent shareholding of Sumitomo Corporation, the promoter of SML, along with a separate 15 per cent stake owned by public shareholder Isuzu Motors Ltd, reported PTI.

The transaction will not only consolidate Mahindra's presence in the commercial vehicle segment but also trigger an open offer for an additional 26 per cent stake in SML Isuzu, as per SEBI Takeover Regulations, the company said in an official statement.

Strategic Expansion to Boost Commercial Vehicle Portfolio

According to Mahindra Group CEO & MD Anish Shah, the deal is an important milestone in the Group’s broader goal of achieving five-fold growth in its emerging businesses. "The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses," he said. Shah also highlighted that the move fits into the company’s capital allocation strategy, focusing investments in high-potential areas that demonstrate operational excellence and offer a strong potential for success.

Rajesh Jejurikar, M&M’s Executive Director and CEO of Auto and Farm Sector, added that the deal enhances Mahindra's position in the trucks and buses category. "SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra's existing offerings in the trucks and buses segment," Jejurikar noted.

He emphasised that the acquisition is a "pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and better plant utilisation." Jejurikar further stated, "Together, we are well-positioned to scale rapidly and drive profitable growth."

Next Steps and Regulatory Approvals

Mahindra & Mahindra clarified that the proposed transaction, including the open offer, is subject to clearance from the Competition Commission of India (CCI). The process is expected to be completed within 2025 in compliance with SEBI Takeover Regulations.

Established in 1983, SML Isuzu has built a solid presence in India's trucks and buses sector, a market where Mahindra is looking to significantly expand its footprint with this acquisition.