M&M to buy 33% stake in the Mitsubishi Heavy Industries for $25 mn
Mitsubishi Heavy Industries (MHI) of Tokyo has entered into strategic partnership with Mumbai-based Mahindra & Mahindra in the agricultural machinery field.
As per the definitive agreement, M&M will acquire 33 per cent of voting stake in Mitsubishi Heavy Industries for $25 million (Rs 160 crore) through fresh issue of common shares and Class A (non-voting) shares of MAM.
The transaction is expected to be completed by October 1, 2015. The new funding will be used to increase MAM's capital base.
This partnership creates win-win for both the companies to jointly develop products and address global opportunities in agri-machinery and tractor space.