Though first announced in October 2014, the deal for Indian giant Mahindra to take a 51 percent ownership position in the French Peugeot Scooters business has now been signed off.
The acquisition has met the regulatory, legal and financial requirements in France, and in line with the anti-trust laws there, the Peugeot trade union's Work Council consultation process has also been successfully completed.
Speaking on the completion of the acquisition, Dr Pawan Goenka, Executive Director of Mahindra and Mahindra Ltd., said "we are committed to the long term growth of Peugeot Motorcycles, and are confident that this relationship will be one of mutual respect, trust and learning.
"This partnership will enable both Mahindra Two Wheelers Ltd. (MTWL) and Peugeot Motorcycles (PMTC) to speed up their international expansion by driving synergies and leveraging respective strengths. It is our intention to work closely to enable a win-win for both partners".
Under the terms of the agreement, MTWL has invested €15m into PMTC to finance projects "implemented through the strategic partnership" and also bought shares held by PSA, which would allow MTWL to take a 51 percent stake in PMTC.
The Mahindra group is a $16.5 billion multi-national based in Mumbai, India, employing more than 200,000 people in over 100 countries.
Peugeot is the oldest motorised two-wheeler manufacturer in the world, having made its first model in 1898. It offers what is said to be one of the most comprehensive ranges of scooters and mopeds from 50cc to 400cc, including the successful Metropolis three-wheeled scooter announced in 2013.
www.mahindra.com
www.peugeotscooters.fr
