Mahindra to acquire Italian car designer company
Indian automobile major Mahindra & Mahindra along with the group’s IT solution arm Tech Mahindra has entered into an agreement to acquire Italian car designer company Pininfarina. The acquisition process will be carried out through a joint venture company in which Tech Mahindra will have 60% share and M&M will hold 40%. “As per the agreement, Tech Mahindra and M&M shall purchase 76.06% of Pininfarina shares from the current controlling shareholder Pincars S.R.L. at a price of Euro 1.1 per share,” the Mahindra Group said in a statement on Tuesday. The Italian firm has crafted models for popular car makers like Ferrari, Maserati, and Rolls Royce, besides designing high-speed trains, buses, trams, rolling stocks, and automated light rail cars. M&M and Tech Mahindra also signed an agreement with the lenders, creditors and lessor of Pininfarina to restructure the existing debt of the Italian firm. The acquisition process is expected to be completed by 2016. Anand Mahindra, Chairman of the Mahindra Group, said that the legendary high-tech design credentials of Pininfarina will enhance the design capabilities of the entire Mahindra Group. “Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice and experience, and hence our success,” he said. For Tech Mahindra, the acquisition will enable its entry into the automotive styling. “Further, Pininfarina's 25-year design expertise in industries beyond automotive will give us that winning edge in areas such as aerospace, consumer electronics, architecture and interiors and transportation where we already have a strong footprint,” said CP Gurnani, CEO and Managing Director, Tech Mahindra. Paolo Pininfarina, Chairman, Pininfarina S.P.A., said that joining hands with a $3.9 billion technology and global partner, and part of the $16.9 billion global Mahindra Group will not only strengthen its identity but will open more doors. “Tech Mahindra's global presence and global delivery model will allow us to compete for a larger pie of the business,” he added.
December 15, 2015 | 03:50pm IST