Mahindra & Mahindra Cleared for Major Stake Acquisition in SML Isuzu

The Competition Commission of India has granted approval for Mahindra & Mahindra's planned acquisition of a significant 58.96% share in SML Isuzu, a commercial vehicle manufacturer, for Rs 555 crore. The strategic move is in sync with Mahindra & Mahindra's growth trajectory and capital allocation in lucrative sectors.

This acquisition involves buying out Sumitomo Corporation's 43.96% stake and a 15% public shareholding from Isuzu Motors, reflecting Mahindra's focused approach toward expanding its hold in the competitive market. The move aligns with the company's commitment to invest in sectors that exhibit growth potential and operational excellence.

SML Isuzu, established in 1983 and known for its truck and bus manufacturing capability, will see a strategic realignment post-acquisition. This transaction required clearance due to regulatory norms that safeguard against monopolistic practices and ensure robust competition within the Indian marketplace.

(With inputs from agencies.)