Mahindra Two Wheelers Ltd.
(MTWL), part of the Mahindra Group, and
Peugeot Scooters (PMTC), part of the Euro 54 billion PSA Group based in France
announced on January 20, 2015 that they have completed the necessary
formalities for MTWL’s 51pc acquisition in PMTC.
PMTC, a key player in urban
mobility in Europe for 116 years, is the oldest motorized two-wheeler
manufacturer in the world. Peugeot Scooters offers one of the most comprehensive
range of scooters and mopeds, from 50cc to 400cc, including the successful
three wheeled scooter – Metropolis - in the European market. This project was
announced on October 7, 2014.
The acquisition, which
resulted in the satisfaction of all regulatory, legal and financial conditions
of the agreement, was completed smoothly by both parties within a very short
span of time. As part of the employee dialogue process and Anti-trust law, the
Works Council consultation process has also been successfully completed. This
was stated in a press release issued by the company.
Dr. Pawan Goenka, Executive
Director, Mahindra & Mahindra Ltd. said, “At Mahindra, we are committed to
the long term growth of Peugeot Motocycles and are confident that this
relationship would be one of mutual respect, trust and learning. This
partnership would enable both MTWL and PMTC to speed up their international
expansion by driving synergies and leveraging respective strengths. It is our
intention to work closely to enable a win-win for both partners".
Under the terms of the
agreement, MTWL has infused Euro 15 million into PMTC to finance projects
implemented through the strategic partnership and has also bought shares held
by PSA which would allow MTWL to take a 51pc stake in PMTC.
The new board of PMTC has been constituted and would
include the following members:
Dr. Pawan Goenka – Director
MTWL & Executive Director, M&M Ltd.
V.S.Parthasarathy – Director
MTWL, Chief Financial Officer, Group CIO, M&M Ltd.
Rajesh Jejurikar – Director
MTWL, Chief Executive-Farm Equipment & Two Wheeler Division, M&M Ltd.
Maxime Picat - Chief Executive
Officer, Peugeot Brand
Emmanuel Delay – Executive
Vice President, Operational Director, India-Pacific