M&M buys 33 % stake in Mitsubishi arm

M&M buys 33 % stake in Mitsubishi arm

M&M buys 33 % stake in Mitsubishi arm

 In a move planned to increase its presence in the agri machinery space, Mahindra & Mahindra has decided to acquire a 33 per cent stake in Mitsubishi Agricultural Machinery Company (MAM).

Under the agreement, M&M will invest $25 million for acquiring 33 per cent voting stake in MAM through fresh issue of common shares and Class A (non-voting) shares of MAM. MAM is a full range agri machinery company producing and selling tractors, combine harvesters, rice transplanters and other agri machinery. It had revenues of approximately $408 million in 2014-15 and a positive EBIT of $3.5 million for 2014-15.