Munich-based private equity firm Mutares SE & Co KGaA has submitted an irrevocable binding offer to acquire 50 per cent equity in Peugeot Motorcycles (PMTC) from Mahindra & Mahindra. But this will give the German company 80 per cent controlling stake in Peugeot. Mahindra will hold the balance 50 per cent equity with 20 per cent stake.
“M&M remains co-shareholder to support new product launches and the strong growth expected in the coming years. The closing of the transaction is expected in the first quarter of 2023 after consultation of the works councils and is subject to approval of the antitrust authorities,” M&M said in a press statement.
Mahindra Two Wheelers Europe, a subsidiary of Mahindra & Mahindra, had acquired 100 per cent stake in Peugeot Motocycles in 2019. Earlier in January 2015, Mahindra had acquired a 51 per cent equity stake in PMTC.
Peugeot Motocycles is headquartered in Mandeure, France generating revenues of approximately €140 million. Peugeot Motocycles manufactures two and three-wheeler scooters which are distributed across 3,000 points of sale through subsidiaries, importers, and dealers in France and internationally, across three continents.
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The company has its own manufacturing facility in Mandeure, a joint venture with JNQQ (Jinan Qingqi Motorcycle) in China, as well as manufacturing partnerships with several large Asian players including THACO in Vietnam.
Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, M&M, said, “We are delighted to welcome Mutares to Peugeot Motocycles. Our efforts are directed towards sustaining this French legacy brand that has been delighting customers for 124 years. With an established track-record of transforming companies across Europe, coupled with their expertise in the automotive business, Mutares is an ideal partner to strengthen and grow the brand with continuing support from M&M”.
Johannes Laumann, CIO of Mutares, said, “This is Mutares’ thirteenth acquisition in 2022. Peugeot Motocycles is an internationally recognised brand built on a rich history as the world’s oldest manufacturer of motorised two-wheelers. We are very proud to be associated with the brand and I strongly believe that we will be able to leverage the true potential of the company based on our vast experience in the industry and strong operational team and together with our partner M&M. Furthermore, Peugeot Motocycles acts as an OEM and we see a huge potential of strong synergies arising within our Automotive & Mobility segment.”