Mahindra acquires 51% stake in Peugeot Motorcycles

Last year, Mahindra Two Wheelers had announced that it had made a binding offer to acquire a 51% stake in Peugeot Motorcycles (PMTC). Now, the company has announced that it has completed all the necessary formalities for the acquisition and bought shares held by the PSA Group of France.

Under the terms of the agreement, MTWL has infused Euro 15 million into PMTC to finance projects implemented through the partnership. The transaction between Mahindra and Peugeot was subject to Works Council consultation, as part of the employee dialogue process and anti-trust law, which, the company claims, was completed successfully.

PMTC has been present for 116 years in Europe and is said to be the oldest motorized two-wheeler manufacturer in the world. The company offers a range of scooters and mopeds, from 50 cc to 400 cc, including the Metropolis three-wheeled scooter.

With the acquisition of Peugeot's scooter division, Mahindra expects to enhance its technological capabilities and also gain entry to European markets. For PMTC, the takeover will help it in gaining access to emerging markets.