Mahindra & Mahindra (M&M) is set to acquire the
manufacturing assets of the China-based Jiangling Tractor
for $8 million (approximately Rs 36 crore) marking the
Indian company''s first overseas acquisition.
acquisition will be made through a joint venture in which
M&M will hold 80 per cent share holding. Jiangling
plant manufactures 12,000 tractors a year, against M &
M''s 80,000-per annum capacity.
MoU was signed between M & M and the of the Chinese
company holding company, Jiangling Motor Corporation Group.
The deal would be finalised subject to regulatory approvals.
in 2003 M&M had lost out to US-based AGCO Corporation
to acquire the Finnish tractor company, Valtra.