Mahindra Two Wheelers Ltd. (MTWL), part of the $16.5 billion Mahindra Group, and Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in France announced that they have completed the necessary formalities for MTWL’s 51 per cent acquisition in PMTC.
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. Peugeot Scooters offers one of the most comprehensive range of scooters and mopeds, from 50cc to 400cc, including the successful three wheeled scooter – Metropolis – in the European market. This project was announced on October 7, 2014.
The acquisition, which resulted in the satisfaction of all regulatory, legal and financial conditions of the agreement, was completed smoothly by both parties within a very short span of time. As part of the employee dialogue process and Anti-trust law, the Works Council consultation process has also been successfully completed.
Speaking on the completion of the acquisition, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd., said: “At Mahindra, we are committed to the long term growth of Peugeot Motocycles and are confident that this relationship would be one of mutual respect, trust and learning. This partnership would enable both MTWL and PMTC to speed up their international expansion by driving synergies and leveraging respective strengths. It is our intention to work closely to enable a win-win for both partners”.
Under the terms of the agreement, MTWL has infused Euro 15 million into PMTC to finance projects implemented through the strategic partnership and has also bought shares held by PSA which would allow MTWL to take a 51 per cent stake in PMTC.
The new Board of PMTC has been constituted and would include the following members:
Dr. Pawan Goenka, Director - MTWL & Executive Director, M&M Ltd.
Mr. V.S. Parthasarathy, Director - MTWL, Chief Financial Officer, Group CIO, M&M Ltd.
Mr. Rajesh Jejurikar, Director - MTWL, Chief Executive - Farm Equipment & Two Wheeler Division, M&M Ltd.
Mr. Maxime Picat, Chief Executive Officer, Peugeot Brand
Mr. Emmanuel Delay, Executive Vice President, Operational Director, India - Pacific