Mahindra and Mahindra (M&M) announced that its subsidiary Erkunt Traktor Sanayi A.S. will acquire the Agriculture Machinery business from its subsidiary Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi, as part of its restructuring of business in Turkey.
Also, in a reverse deal, Mahindra Overseas Investment Company (Mauritius) Ltd. (MOICML), a wholly owned subsidiary of M&M, and Erkunt, have agreed to sell their entire stake of 94.3% in Hisarlar, for an aggregate consideration of Turkish Lira 6.6 million ( about ₹5.6 crore).
As part of the plan, 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 and Brand use rights. 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,” M&M said in a filing.
In addition, Erkunt will acquire select cabin manufacturing assets of Hisarlar, it added.
Hemant Sikka, president, Farm Equipment Sector, M&M said,” Through this transaction, we have retained the core business of agricultural machinery and all the IP. This makes Erkunt Traktor a full range farm equipment OEM ensuring that our dealers in Turkey and customers in Europe and other international markets continue to be serviced.”
