On Thursday, Mahindra & Mahindra signed a definitive agreement to acquire 33% stake in Mitsubishi Agricultural Machinery Co. for 25 million dollars (Rs 159.24 crore), the company said in a statement to BSE.
Mahindra & Mahindra will be acquiring 33% voting stake in the subsidiary of Mitsubishi Heavy Industries through fresh issue of common shares and Class A (non-voting) shares of Mitsubishi Agri Machinery.
The agreement has been signed between Rajesh Jejurikar, the president & chief executive of farm equipment and two wheeler division of Mahindra & Mahindra and Kazuaki Kimura, the president and CEO of Mitsubishi Heavy Industries and Katsumi Tottori, president of Mitsubishi Agricultural Machinery.
Jejurikar said that the acquisition is win-win for the agricultural machinery businesses of both companies.
“This will enable strategic growth avenues for Mitsubishi Agricultural Machinery through Mahindra USA, China and other international markets, thereby speeding up international expansion.”