Mahindra Cars Finally Acquires Financial Disaster Struck Pininfarina
MANILA: The deal is sealed, what started back in August is finally on paper now, the Indian-born automotive company Mahindra has announced its Pininfarina acquisition. Thus, making Tech Mahindra and Mahindra & Mahindra the joint owner of the Italian auto designer firm.
So, the $16.9 billion Indian firm now has added the iconic Italian brand to its long list of ventures by entering into an agreement with Pincar S.r.l. The company didn't reveal the exact portion it had to shed under the deal, but as per sources, both Tech Mahindra and M&M now hold 76.06 per cent of controlling stakes of Pininfarina, with each share priced at Euro 1.1. An open offer for the remaining 23.94 will be made in future under the same price. The above investment is done under a joint venture company form, whose 60% stake will be with Tech Mahindra and 40% with M&M.
After the said deal, the Italian auto engineering and styling house will continue to remain an independent company with its name listed on the Milan Stock Exchange and its command under its long Chairman, Paolo Pininfarina.
Both the companies will be benefited by the deal, as for Mahindra cars it will take advantage of Pininfarina's 25-year auto experience, high-end design language, engineering skills, designing capabilities, and its mastery over the areas like architecture, consumer electronics, aerospace, transportation and interior. And as for the 1930 originated Italian brand it will gain from Tech Mahindra global presence across 90 countries and access in about 780 countries. Thus, both sides will be able to cross-sell and upsell their products to the wide consumer base present around the world.
This move by Mahindra cars will further strengthen its reputation as a firm that buys depressed, deserted companies. Back in 2010, it brought the troubled South Koren automaker Ssangyong Motors and in 2014, it acquired the majority of stakes in France-based automaker Peugeot.
Read More: Mahindra & Mahindra Bids Again to Acquire Pininfarina
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