Mahindra & Mahindra to buy Kinetic MotorsMahindra & Mahindra in talks to buy Kinetic Motors
Apnaloan.com Research Bureau
14 May 2008
Mahindra & Mahindra (M&M) is in talks to acquire Kinetic Motors. The move signals M&M's interest in the two-wheeler segment, which has seen sharp growth and fierce competition in the past few years.
Both the companies are in the final stage of due diligence and M&M is
expected to pick up a majority stake in the company. Kinetic Motors has been
valued at close to Rs 150 crore and the deal size is expected to be in the
range of Rs. 70-80 crore.
M&M is one of India's leading manufacturers of general-purpose utility vehicles, light commercial vehicles, tractors and SUVs. Kinetic Motors has presence in motorcycles, scooters and utility vehicles in the two-wheeler segment.
Experts believe that Kinetic Motors could be a good buy for M&M and the development is consistent with a sub-scale player exiting the market.