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Mahindra may buy Sumitomo stake in SML Isuzu
The Indian automaker is weighing offering the Japanese trading firm Rs1,400-1,500 per share, the report said, valuing SML Isuzu at Rs2,026 crore, or $236 million, Reuters calculate
Mahindra and Mahindra Ltd is in talks to buy Japan’s Sumitomo Corp.’s entire 44% stake in heavy vehicle-maker SML Isuzu, CNBC Awaaz reported, citing people aware of the discussions.
The Indian automaker is weighing offering the Japanese trading firm Rs1,400-1,500 per share, the report said, valuing SML Isuzu at Rs2,026 crore ($236 million), Reuters calculated.
Shares of SML Isuzu, which manufactures trucks and buses, rose 4.4% from the previous day’s close to Rs1,726.40 in Mumbai on Monday.
Mahindra’s board is likely to meet this week to discuss the proposed deal, the report said. The company makes trucks and sport utility vehicles (SUVs).
SML Isuzu did not respond to a request for comment.
“We do not comment on market speculation,” a Mahindra and Mahindra spokesperson said.
Japan’s Isuzu, which manufactures SUVs and pickup trucks through another entity, owns a 15% stake in SML Isuzu.
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