Mahindra takes over Peugeot Motorcycles

Peugeot Motorcycles in the turmoil; it was until yesterday a simple noise corridor. But for a few hours now, its official and it’s the Indians that the firm Mahindra lion sold 51% of its shares. . At the same time, Mahindra wants to stimulate activity and promises to invest 15 million euros in order to allow Peugeot Motorcycles, to “finance projects implemented as part of a strategic partnership.”

Mahindra takes over Peugeot Motorcycles

In the industry, especially for PSA, times are tough. The opportunity for the firm to make Sochaux hand a little and let in the capital of other brands, fitter and necessarily foreign. So after that the Chinese were interested in their cars, it was the turn of the Indians to take the reins of the two-wheeler benched Peugeot.

Mahindra takes over Peugeot Motorcycles

Mahindra Two Wheelers, a part of $16.5-billion Mahindra Group, has entered into a binding bid to acquire 51% stake for Rs216 crore, or 28 million, in Peugeot Motorcycles, an affiliate of the 54-billion PSA group. The move is seen as an attempt by the Indian company to grow its fledgling two-wheeler business. The announcement on Tuesday came after several months of negotiation with French carmaker Peugeot.

The funds will be infused subject to “Works Council consultation,” as part of the employee dialogue process and after obtaining a green signal from the anti-trust law. According to senior M&M officials, out of the 28 million, 13 million will be spent on secondary sale of shares from Peugeot of PSA, and 15 million through a fresh issue of shares to M&M. Pawan Goenka, ED, automotive business at M&M said the legal process will be completed in three months. Once the formalities are completed, the new board will have 3 nominees from Mahindra Two Wheelers and 2 from PSA Group.

Interestingly, the CEO of the Scooter business at Peugeot is Fredric Fabre, who was leading Peugeot’s re-entry into India, two years back. Fabre will continue as the CEO of the company.

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