The deal involves the acquisition of a combined 58.96% stake in SML Isuzu through two separate transactions: 43.96% from Sumitomo Corporation, a promoter of SML, and 15% from Isuzu Motors Ltd, a public shareholder.
The transactions will be followed by an open offer to acquire up to 26% of the company’s equity from public shareholders at ₹1,554.60 per share, in line with SEBI’s takeover regulations.
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The green light from the CCI clears a major regulatory hurdle for Mahindra’s strategic move to strengthen its presence in the commercial vehicle segment.
The company said that the CCI communicated its approval on June 17 under Section 31(1) of the Competition Act, 2002. With this clearance in place, Mahindra is expected to proceed with the share purchases and the open offer process in due course.
Through this acquisition, M&M intends to establish a strong presence in the commercial vehicle segment in excess of 3.5 tonnes. M&M currently has a 3% market share in this segment, and this acquisition will double the same to 6%, the company said in a statement.
The plan is to further increase the market share to between 10% and 12% by financial year 2031 and to 20% by financial year 2036.
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SML Isuzu has a 16% market share in the ILCV buses segment and has reported an operating revenue of ₹2,196 crore and an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of ₹179 crore in the financial year 2024.
Shares of Mahindra & Mahindra Ltd ended at ₹3007.80, down by ₹12.90, or 0.43%, on the BSE.
