Massive Acquisition Alert! Mahindra is set to buy a huge 59% stake in SML Isuzu for a whopping Rs 555 crore! What does this mean for the future of the heavy-vehicle market?

Mahindra & Mahindra Ltd (M&M) announced on Saturday that it has agreed to buy nearly 59% of SML Isuzu, a company that makes heavy vehicles, for Rs 555 crore. This will be done by purchasing shares at Rs 650 each.

As part of this deal, M&M will buy the 44% stake held by Sumitomo Corporation, which is the main promoter of SML Isuzu. It will also buy a 15% stake owned by Isuzu Motors, another shareholder in SML.

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Additionally, M&M will make an open offer to buy up to 26% of the remaining shares from the public, following rules set by the Securities and Exchange Board of India (SEBI).

This acquisition will help M&M increase its market share in the heavy vehicle sector from 3% to 6%. The company aims to raise its market share further to 10-12% by the financial year 2031 and 20% by 2036.