Indian automaker Mahindra & Mahindra has finally acquired Italian car designer Pininfarina.
Talks of a deal have been ongoing all year but the takeover is finally official in a deal worth about $185 million. It is the latest international expansion by Mahindra, which also purchased Korean automaker Ssangyong and the motorcycle unit of Peugeot. The Italian design firm has already cooperated with Mahindra for development on an SUV and a halo electric sports car concept that debuted last year.
According to a report on the acquisition, Mahindra will purchase a 76-percent stake from the Pincar holding company for 25.3-million euros ($27.8 million) and will offer the same price of 1.10 euros per share for the remaining stock. In addition to buying stock, the Indian automaker will invest 20-million euros ($22 million) in Pininfarina while guaranteeing creditors 114.5-million euros ($126 million).
Despite the sale, Pininfarina will remain an independent company with a separate listing in Milan. The grandson of the company’s founder, Paolo Pininfarina, is set to remain chairman and the deal is expected to close in the first half of 2016.
“The legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra group,” Mahindra & Mahindra chairman Anand Mahindra said in a statement. “Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice.”
[Source: Automotive News]
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