Mahindra and Mahindra Ltd, on Wednesday announced that its subsidiary Erkunt Traktor Sanayi AS, will acquire the Agriculture Machinery business from Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar), also a subsidiary of the company.
Conversely, Mahindra Overseas Investment Company (Mauritius) Limited , a wholly owned subsidiary of the Company, and Erkunt have agreed to sell their entire stake of 94.3% in Hisarlar, for an aggregate consideration of Turkish Lira 6.6 million (equivalent to approx. Rs 5.6 crores).
As part of the restructuring of its subsidiaries in Turkey, Mahindra Group will exit Hisarlar’s metal fabrication business. While, Erkunt will acquire the agricultural machinery business of Hisarlar, including select related assets, intellectual property (IP), and brand use rights.” M&M said in a statement. Mahindra Group, through Erkunt, will continue to stay invested in the core business of agricultural machinery products ranging from soil tillage to post-harvest segments. In addition, Erkunt will acquire select cabin manufacturing assets of Hisarlar, it added.