Auto major Mahindra & Mahindra on Tuesday said it has completed the entire stake buyout of US-based Navistar in two joint ventures - Mahindra Navistar Automotives and Mahindra Navistar Engines.
"M&M has completed its purchase of the Navistar Group's stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL)," Mahindra & Mahindra Ltd (M&M) and Navistar International Corporation said in a joint statement to the BSE.
The deal has received regulatory approval in India and Mahindra has now taken complete ownership of operations and continues to sell MNAL and MNEPL products, they said. M&M has bought the remaining 49 per cent stake in the joint venture with US-based Navistar International Corp. The financial details were not disclosed.
"Mahindra & Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra's truck and engine businesses continuing to play a critical role in helping us achieve this goal," M&M president, automotive and farm equipment, Pawan Goenka said.
In December 2012, Navistar had announced its intention to exit the joint venture as part of its strategy to focus on strengthening North American core businesses. "Mahindra has been a valuable partner these last seven years and they are well quipped to move the MNAL and MNEPL businesses forward as the Indian market continues to develop," Navistar president and chief operating officer Troy Clarke said.
As part of the agreement inked by both the firms last year, Navistar would continue sourcing components from India while Mahindra would continue to provide engineering services to it. "The Navistar group will continue to support Mahindra through licence agreements and extend necessary support to MNAL and MNEPL for purpose of business continuity," the companies said.
M&M stock price
On November 30, 2015, Mahindra and Mahindra closed at Rs 1367.25, up Rs 19.05, or 1.41 percent. The 52-week high of the share was Rs 1441.45 and the 52-week low was Rs 1095.00.
The company's trailing 12-month (TTM) EPS was at Rs 52.62 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 25.98. The latest book value of the company is Rs 310.09 per share. At current value, the price-to-book value of the company is 4.41.
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