M&M to Acquire Majority Stake in SML Isuzu

Mumbai- Mahindra & Mahindra Ltd., (M&M) has agreed to acquire a 58.96% stake in SML Isuzu Ltd. at INR 650 per share, totaling INR 555 crore ($65 million USD). This acquisition will strengthen M&M's position in the >3.5T commercial vehicle (CV) segment, where it currently holds a 3% market share. The deal aims to increase market share to 6% by FY31 and 20%+ by FY36.

SML Isuzu, a listed company since 1983, has a strong presence in the Trucks and Buses segment, with a leading position in the ILCV Buses segment (16% market share). In FY24, SML reported INR 2,196 crore in revenue and INR 179 crore in EBITDA.

M&M will acquire 43.96% from Sumitomo Corporation and 15% from Isuzu Motors, with an open offer for up to 26% from public shareholders. This acquisition will unlock synergies across cost, network, brand, manufacturing, talent, and product innovation.

Dr. Anish Shah, Group CEO & MD of the Mahindra Group, said, “The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses. This acquisition is aligned with our capital allocation strategy for investing in high potential growth areas which have a strong right to win and have demonstrated operational excellence.”

Mr. Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd., said, “SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra’s existing offerings in the trucks and buses segment. This acquisition is a pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and better plant utilization. Together, we are well-positioned to scale rapidly and drive profitable growth.”

The transaction, including the open offer, is subject to the approval of the Competition Commission of India and is expected to complete within 2025 in accordance with SEBI Takeover Regulations.