Mahindra buys 58.9% stake in SML Isuzu

M&M is buying a 58.9% stake in SML Isuzu for ₹555 crore.

The deets: SML Isuzu makes trucks, buses, and special-purpose vehicles, mainly serving India’s light and medium commercial vehicle (CV) market.

M&M will buy SML Isuzu shares for ₹650 each, taking over nearly 44% from Sumitomo and 15% from Isuzu Motors to become the new majority owner.

Under SEBI rules, since M&M is acquiring more than 25%, it must also make an open offer to public shareholders.

The why: Mahindra is looking to strengthen its presence in the fast-growing commercial vehicle (CV) market, especially in the trucks and buses category.

Buying SML Isuzu gives it ready-made products, dealerships, and customers, helping it fast-track growth and compete better against bigger players like Tata Motors and Ashok Leyland.

This deal will double Mahindra’s market share in the trucks and buses segment from 3% to 6%.

SML Isuzu shares hit the 10% lower circuit on the news.