This transaction entails acquiring a total of 58.96% stake in SML Isuzu through two distinct deals: 43.96% from Sumitomo Corporation, one of the promoters of SML, and 15% from Isuzu Motors Ltd, a public shareholder.
The acquisitions will be accompanied by an open offer to purchase up to 26% of the company’s equity from public shareholders at ₹1,554.60 per share, as per SEBI’s takeover guidelines.
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The CCI’s endorsement removes a significant regulatory obstacle for Mahindra as it aims to enhance its position in the commercial vehicle market.
The company noted that the CCI communicated its approval on June 17 under Section 31(1) of the Competition Act, 2002. With this approval finalized, Mahindra is likely to move forward with the share acquisitions and the open offer process shortly.
Through this acquisition, M&M aims to solidify its footprint in the commercial vehicle sector above 3.5 tonnes. Currently holding a 3% market share in this category, the acquisition is projected to elevate this to 6%, as stated by the company.
The objective is to boost the market share further to between 10% and 12% by the financial year 2031, eventually aiming for 20% by the financial year 2036.
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SML Isuzu commands a 16% market share in the ILCV buses segment and has reported an operating revenue of ₹2,196 crore along with an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹179 crore for the financial year 2024.
The shares of Mahindra & Mahindra Ltd closed at ₹3007.80, a decline of ₹12.90, or 0.43%, on the BSE.
