Mahindra & Mahindra has announced the acquisition of a stake in Sampo Rosenlew Oy, a manufacturer of combine harvesters and forest machinery with market presence in Europe, CIS and Algeria.
Post-acquisition, Mahindra stake in the company will increase from 74.97% to upto 79.13%, the filing said.
With this acquisition, Mahindra’s scale in tractors and Sampo’s expertise in combine harvesters will allow both companies to offer a broader product portfolio to address the needs of farmers in various countries, the statement said.
According to the exchange filings, total acquisition cost is Euro 34,99,650 (1,050 Equity Shares at Euro 3,333 per share) [equivalent to around Rs. 31.15 crores at the foreign exchange rate of Rs. 89 per Euro].
Post-acquisition of Equity Shares, Sampo would continue to remain a Subsidiary of the Company, it added. Sampo had a total revenue of Euro 49 million for the year ended 31st March, 2020.
In India, the combine harvester market is currently much smaller than tractors but is growing rapidly with the penetration of mechanisation. It is imperative that the Company builds a strong position in this product line for India and other export markets, Mahindra said.
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