M&M merges trucks and buses division with itself

01 Apr 2014

Mahindra & Mahindra (M&M) has completed the merger of its trucks and buses division of its subsidiary Mahindra Trucks and Buses Ltd (MTBL) with itself to reap the benefits of synergy.

The trucks and buses division was first demerged from Mahindra Trucks and Buses Ltd and then merged with M&M under a scheme of arrangement effective 30 March 2014, M&M said in a filing with the BSE today.

The trucks and buses vertical was first demerged from MTBL in August 2013.

The Bombay High Court had, on 7 March, approved the scheme of arrangement between M&M and MTBL.

As per the approved scheme, all assets and liabilities of MTBL have been transferred to M&M.

MTBL had accumulated losses of Rs920 crore till FY'13, which will be transferred to M&M account.

M&M shares rose by Rs15.95 (1.63 per cent) on the Bombay Stock Exchange (BSE) and was trading at Rs996.60 at 3.25 pm today.