M&M to sell controlling stake in Peugeot Motocycles to Mutares
Germany-based Mutares SE & Co will acquire 80 percent controlling stake in Mahindra & Mahindra's French unit Peugeot Motocycles.
In a statement, the Mumbai-based auto major on Thursday said Mutares has submitted an irrevocable binding offer to acquire 50 per cent of equity and a controlling stake of 80 per cent in France-based Peugeot Motocycles (PMTC).
As part of the deal, Purple, a fully-owned entity of Mutares Holding, would invest 7 million euros in PMTC, which would entitle it to a 50 per cent shareholding and 80.01 per cent voting rights in the French firm.
Mahindra & Mahindra (M&M) said it remains the co-shareholder to support new product launches and the strong growth expected in the coming years.
The closing of the transaction is expected in the first quarter of 2023 after consultation of the works councils and is subject to approval of the 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).
Mandeure (France)-based PMTC generates revenues of around 140 million euros. It manufactures two and three-wheeler scooters which are distributed across 3,000 points of sale through subsidiaries, importers, and dealers in France and internationally, across three continents.
The company has a manufacturing facility in Mandeure, a joint venture with JNQQ (Jinan Qingqi Motorcycle Co, Ltd.) in China, as well as manufacturing partnerships with several large Asian players including THACO in Vietnam.
Commenting on the deal with Mutares, M&M Executive Director, Auto & Farm Sectors Rajesh Jejurikar said the company's efforts are directed towards sustaining the French legacy brand that has been delighting customers for 124 years.
"With an established track-record of transforming companies across Europe, coupled with their expertise in the automotive business, Mutares is an ideal partner to strengthen and grow the brand with continuing 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 recognised brand built on a rich history as the world's oldest manufacturer of motorised two-wheelers.
"I strongly believe that we will be able to leverage the true potential of the company based on our vast experience in the industry and strong operational team and together with our partner M&M," he stated.
Furthermore, Peugeot Motocycles acts as an original equipment manufacturer (OEM) and Mutares sees a huge potential of strong synergies arising within its automotive and mobility segment, Laumann added.
In October 2014, M&M had announced that it would acquire 51 per cent stake in PMTC for 28 million euros. The acquisition was completed in January 2015.
In 2019, M&M announced that its subsidiary MTWEH
Will fully acquire PMTC for an undisclosed amount.
Munich-headquartered Mutares, a listed private equity holding company, acquires medium-sized companies in special situations, based in Europe, which show significant operational improvement potential and are sold again after undergoing a repositioning and stabilization process.