Priyanka Tiwari
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Mahindra & Mahindra (M&M) is reportedly in advanced discussions to acquire the entire promoter stake in SML Isuzu, a prominent manufacturer of commercial vehicles in India. This strategic move is anticipated to bolster M&M's presence in the trucks and buses segment.
Valuation and Stake Details
Valuation: M&M is considering a valuation of ₹1,400–1,500 per share for SML Isuzu.
Promoter Stake: As of December 2024, Sumitomo Corporation holds a 43.96% stake, and Isuzu Motors owns 15% in SML Isuzu.
Market Reactions
SML Isuzu Shares: Following the news, SML Isuzu's shares rose by approximately 5.21% to ₹1,738.00, peaking at ₹1,787 during the session.
M&M Shares: Conversely, M&M's shares experienced a slight decline, trading 1.4% lower at ₹2,762 apiece.
Official Responses
M&M has refrained from commenting on the ongoing speculations, and SML Isuzu has yet to issue a statement regarding the potential acquisition.
Strategic Implications
Acquiring SML Isuzu would enable M&M to strengthen its footprint in the commercial vehicle sector, leveraging SML Isuzu's established presence and expertise in the industry.
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