Mahindra to Acquire Majority Stake in SML Isuzu

New Delhi, May 9 (PTI) Mahindra & Mahindra (M&M) has sought approval from the Competition Commission of India to acquire majority stake in commercial vehicle maker SML Isuzu.

The company had earlier announced that it would acquire 58.96 per cent stake in SML Isuzu for Rs 555 crore.

"The proposed combination relates to acquisition of shareholding by the acquirer (M&M) in the target (SML Isuzu Ltd)," a notice filed with the Competition Commission of India (CCI) said on May 5.

The proposed combination is notified under section 5(a)(i)(A) of the Competition Act, 2002, it added.

M&M is the flagship company of the Mahindra group, which is engaged in various sectors such as automotive, farm equipment, financial services, IT aerospace, real estate & infrastructure, logistics and hospitality.

For the assessment of CCI, the parties said "the proposed combination will not lead to any change in the competitive dynamics, let alone cause any appreciable adverse effect on competition in India, delineation of a relevant market can be left open".

On April 26, the Mumbai-based automaker said that it will acquire the entire stake of 43.96 per cent held by Sumitomo Corporation, promoter of SML, and separately acquire a 15 per cent stake held by Isuzu Motors Ltd, public shareholder of SML, for an aggregate consideration of Rs 555 crore.

Besides, the automaker will make an open offer to acquire a 26 per cent stake in SML Isuzu in accordance with Sebi Takeover Regulations, it added.

Incorporated in 1983, SML Isuzu has a presence in the trucks and buses segment.