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Mahindra & Mahindra announces binding offer to acquire 51% stake in Peugeot Motocycles

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Capital Market
Last Updated : Oct 07 2014 | 11:01 AM IST

For Euro 15 million

Mahindra & Mahindra announced that Mahindra Two Wheelers (MTWL), an unlisted subsidiary of Mahindra & Mahindra and part of the USD 16.5 billion Mahindra Group, has made a binding offer to acquire a 51% stake in Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in France.

PMTC (a.k.a. Peugeot Scooters), a key player in urban mobility in Europe for 116 years, is the oldest motorized two-wheeler manufacturer in the world. The transaction between MTWL and PSA, subject to Works Council consultation, as part of the employee dialogue process and anti-trust law, would involve infusion of Euro 15 million into PMTC to finance projects implemented through the strategic partnership, and further sale of shares by PSA which would allow MTWL to take a 51% stake in PMTC.

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First Published: Oct 07 2014 | 10:12 AM IST

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