The Competition Commission Of India (CCI) has recently approved the acquisition of SML Isuzu Ltd at a 59% stake by Mahindra & Mahindra. The acquisition of the majority stake was valued at around ₹555 Crore, marking a significant move in the commercial vehicle business.
CCI expressed in a press release about the acquisition, “The proposed combination relates to acquisition of SML Isuzu Limited (Target) by Mahindra and Mahindra Limited (Acquirer).”
In April, the company announced the deal that involved purchasing the shareholdings by Sumitomo Corporation (43.96%) and an individual acquisition of 15% of Isuzu Motors Ltd.. After the acquisition approval, the share price of Mahindra & Mahindra has surged.
FY 2024, the operating revenue of SML Isuzu is ₹2,196 crore with an ₹179 crore EBITDA. SML Isuzu is a major player in the bus segment with a market share close to 16%.
This acquisition shows Mahindra’s long-term capital allocation strategy that focuses on the high-growth and emerging sectors, especially in the commercial mobility segment.
