Mahindra and Mahindra announced that its subsidiary Erkunt Traktor Sanayi A.S. (Erkunt) in Turkey, will acquire the agriculture machinery business from Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar).
In a reverse deal, Mahindra Overseas Investment Company (Mauritius) and Erkunt have agreed to sell their entire stake of 94.3% in Hisarlar for an aggregate consideration of Turkish Lira 6.6 million (USD 765,000).
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 soil tillage to post-harvest segments. In addition, Erkunt will acquire select cabin manufacturing assets of Hisarlar.
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 built over the years. This makes Erkunt a full range of farm equipment OEM, ensuring that our dealers in Turkey and customers in Europe and other international markets continue to be serviced.”
Currently, Mahindra is represented with their tractors in over 50 countries across the globe.