International Ltd is interested in picking up a stake in Eicher Motors Ltd, media
reports said on Friday 5 October, citing inside sources. Mahindra International
is a subsidiary of Mahindra & Mahindra Ltd and Navistar''s International Truck
and Engine Corp.
reports had indicated that Volvo was in advanced negotiations to buy a majority
stake in Eicher, and that its offer of Rs675 ($17) a share had topped an offer
of Rs500 a share from DaimlerChrysler.
had said in July that it was considering a strategic partnership. A statement
from the company yesterday said it was evaluating prospects and was "in discussions
with various potential partners". An alliance with a maker of heavy commercial
vehicles would give Eicher expertise in engines and high-capacity trucks.
promoters hold about 59 per cent in the company, while Mitsubishi Motors has 3.6
per cent. Both Mahindra and Volvo declined comment, though the latter has maintained
that it is interested in a partnership with an Indian firm.
infrastructure and stricter emission and safety rules are fuelling a demand for
advanced trucks in India. The market is presently dominated by Tata Motors, with
Ashok Leyland in second place. While Ashok Leyland is planning a joint venture
with Japan''s Nissan Motor Co, local light trucks maker Force Motors has a joint
venture with Germany''s MAN AG.