Aug 12: India’s leading automaker Mahindra & Mahindra Ltd (M&M), a part of the Mumbai-based $19 billion Mahindra Group, on Friday announced that it has signed a Binding Agreement with the Yueda Group of China.
Under this agreement, Mahindra proposes to sell its stake in the joint venture MYYTCL to the Yueda Group, for a total consideration of Rmb 82 million (approx Rs 78.84 crore), making it a 100% subsidiary of the Group. The transaction is subject to regulatory approvals.
“…Mahindra Overseas Investment Company (Mauritius) Ltd (MOICML), a wholly owned subsidiary of the company, has agreed to sell its entire shareholding of 51% in Mahindra Yueda Yancheng Tractor Company Ltd (MYYTCL), China to Jiangsu Yueda Investment Co. Ltd and Jiangsu Yueda Group Co. Ltd and Mr. Yan Bingde for an aggregate consideration amount of Rmb 82,000,000/-,” the company said.
“This development would also mark the beginning of a new journey for Mahindra in China, as the company reviews its plans to explore the wider opportunities which would be available to Mahindra with its recent global initiatives in the farm machinery space,” it added.
Under the aegis of the agreement, both Mahindra Group and Yueda Group can operate independently in China.
Through its recent acquisitions, Mahindra now has an expanded farm machinery product portfolio going beyond tractors, which includes rice transplanters, harvesters and farm implements. The company will evaluate the market opportunity for introducing these products into China and explore opportunities to create global supply chain, it said.