Mahindra and Mahindra to buy 33% stake in Mitsubishi Agricultural Machinery

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Added in: Mahindra

Mitsubishi Heavy Industries and Mahindra & Mahindra entered into a strategic partnership in the agricultural machinery field. Under the agreement, Mahindra will invest USD 25 million for acquiring 33% voting stake in Mitsubishi Heavy Industries subsidiary, Mitsubishi Agricultural Machinery through fresh issue of common shares and Class A (non-voting) shares of Mitsubishi Agricultural Machinery. The deal is expected to close by October 1, 2015, with the new funding to be used to increase Mitsubishi Agricultural Machinery’s capital base.

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Mitsubishi Agricultural Machinery is a full range agri-machinery company producing and selling tractors, combine harvesters, rice transplanters and other agri-machinery. It had revenues of approximately USD 408 million in 2014-15.

Speaking about the partnership, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra said that Mahindra has had a decade long association with Mitsubishi in USA where their products have played a significant role in Mahindra USA’s success. With this alliance Mahindra and Mahindra will focus on making aggressive investments in marketing and product development and becoming a significant player in the global Agri Machinery Industry.

mahindra tractors

Mitsubishi Agricultural Machinery has been supplying OEM tractors to Mahindra USA (subsidiary of M&M in the US) as well as providing technical license to Mahindra for walk-behind rice planters and new tractor in India. The new partnership will help both companies to jointly develop products to address global opportunities in the tractor and agri-machinery space. In addition, the partnership will enable Mitsubishi Agricultural Machinery and Mahindra to improve cost competitiveness though joint procurement and optimize the supply chain.

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