M&M to acquire Italian design firm Pininfarina

Mumbai: Mahindra group on Monday announced it will acquire Italian automotive and industrial design firm Pininfarina for an overall outgo of over Euro 50 million (nearly Rs 370 crore) after months of negotiations.

 

The acquisition is being carried out through a special purpose vehicle (SPV) and two group firms Tech Mahindra and Mahindra & Mahindra (M&M) will own 60 per cent and 40 per cent, respectively, in the Turin-based firm. “As part of the agreement, Tech Mahindra and M&M will purchase 76.06 per cent of Pininfarina shares from the current controlling shareholders Pincar srL at a price of Euro 1.1 per share,” M&M said in a BSE filing. The cost of acquiring would be funded by Tech Mahindra and M&M in 60:40 ratio.  This will be followed by an open offer for the remaining 23.94 per cent stake.