India’s Mahindra Buys 33% Stake in Mitsubishi Agricultural
News out of Mumbai today, as auto giant Mahindra & Mahindra (M&M) buys a healthy chunk of Mitsubishi’s agricultural arm.
Mitsubishi Heavy Industries signed a $25 million agreement with Mahindra on Thursday, solidifying M&Ms 33% voting stake in its agricultural subsidiary, Mitsubishi Agricultural Machinery Company (MAM).
Rajesh Jejurikar, President and Chief Executive (Farm Equipment and Two Wheeler Division), Mahindra & Mahindra, said, “This will enable strategic growth avenues for MAM through Mahindra USA, China and other international markets, thereby speeding up international expansion. It will also provide a platform for both the companies to leverage technology and product development synergies.”
The Mitsubishi Agricultural Machinery Company was founded in 1980 after a merger with Satoh Agricultural Machinery. The company currently produces tractors, combines, and mini rotors for global distribution. Mahindra & Mahindra is an automobile manufacturer headquartered in Mumbai, India, that currently produces tractors in addition to passenger and commercial vehicles, including the popular Quanto SUV.
The aspirations of this agreement with Japan should produce additional global opportunities for M&M, which recently pulled its passenger vehicles out of the Brazilian market. The new deal with Mitsubishi is projected to close by October 2015.
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