India's Mahindra to buy majority of truck and bus maker SML Isuzu for $65 mln

Isuzu Motors

26/04/2025 17:35

NEW DELHI, April 26 (Reuters) - India's Mahindra & Mahindra MAHM.NS, known for its muscular SUVs and tractors, said on Saturday it had entered into a deal to buy a 58.96% stake in SML Isuzu SMLI.NS for 5.55 billion rupees ($65.00 million) to bolster its truck and bus business.

The acquisition will double Mahindra's market share in the trucks and buses segment of India's fast-growing economy to 6%, with a plan to raise that to 12% by fiscal year 2031, it said.

Mahindra will buy Japan-based Sumitomo Corp's 8053.T 43.96% stake in SML and Isuzu Motors' 7202.T 15% stake, apart from launching a mandatory open offer for an additional stake of up to 26% in the company, according to local regulations.

The purchase price is 650 rupees per share, a steep discount to SML's closing price of about 1,773.4 rupees on Friday. The stock has risen about 20% this year, partly on speculation about a deal. The open offer will be for 1,554.6 rupees per share.

"The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses," Mahindra Group CEO Anish Shah said in a statement.

"This acquisition is aligned with our capital allocation strategy for investing in high potential growth areas which have a strong right to win and have demonstrated operational excellence."

($1 = 85.3800 Indian rupees)

 (Reporting by Sarita Singh and Krishna N. Das in New Delhi
Editing by Gareth Jones)

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