According to a report from the Economic Times, Mahindra and its subsidiary Erkunt Traktor Sanayi A.S. (Erkunt) have agreed to acquire another subsidiary of Mahindra, Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar).
The report stated the following:
In a reverse deal, Mahindra Overseas Investment Company (Mauritius) Limited (MOICML), a wholly-owned subsidiary of the company, and Erkunt have agreed to sell their entire stake of 94.3% in Hisarlar, for an aggregate consideration of Turkish Lira 6.6 million (equivalent to approx. $760,000), the company said in a release.
As part of the restructuring of its subsidiaries in Turkey, Mahindra Group will exit Hisarlar’s metal fabrication business. 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 tillage to post-harvest segments. In addition, Erkunt will acquire select cabin manufacturing assets of Hisarlar.
Hemant Sikka, president, Farm Equipment Sector, M&M Ltd, said, “Through this transaction, we have retained the core business of agricultural machinery and all the IP built over the years. 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."