P.V.Anandpadmanabhan

Mahindra Two Wheelers Ltd. (MTWL), an unlisted subsidiary of Mahindra & Mahindra Limited and a part of the US$ 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.

Peugeot Scooters, a key player in urban mobility in Europe for 116 years, is the oldest motorized two-wheeler manufacturer in the world. It offers one of the most comprehensive range of scooters and mopeds, from 50cc to 400cc, including the successful three wheeled scooter.

The transaction between Mahindra two wheeler Limited and Peugeot scooters, 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.

Commenting on the development, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra said, “The coming together of Mahindra & Peugeot is a win-win for the two wheeler businesses of both companies.

Mahindra would offer access to the India 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 would enable both MTWL and PMTC to speed their international expansion by driving synergies and leveraging respective strengths of both parties”.