M&M acquires 75 per cent stake in Hisarlar

A manufacturer of passenger cars and commercial vehicles, Mahindra and Mahindra on January 20, 2017 signed a shared subscription agreement for acquiring up to 75.1 per cent stake in Turkish farm equipment company, Hisarlar Makina Sanayi Ve Ticaret Anonim Sirketi (Hisarlar). Hisarlar is a leading player in industrial cabinets and agricultural machinery market.

The acquisition will be in cash consideration amounting to Rs 127 crore or 71 million Turkish Lira. The acquisition is expected to be completed in 3 months. With acquisition, Mahindra and Mahindra will get distribution network in Turkey market and also an opportunity to strengthen its current anti-machinery product portfolio in Europe. 

"The association will help in growing the farm equipment business in Turkey and Europe," Mahindra and Mahindra said in a statement. The balance shareholding in the Turkish firm will be with the European Bank for Reconstruction and Development (18.7 per cent) and the founding Turker family (6.2 per cent), respectively, it added.

Mahindra and Mahindra is trading marginally higher after opening on a flat note from previous close. The stock has gained 0.3 per cent outperforming the Auto index which is flat to negative and also Nifty index which is down 0.3 per cent.