Mahindra, BAE Systems to review defence joint venture

Moneycontrol Bureau

Mahindra & Mahindra and BAE Systems are reviewing their joint venture, Defence Land Systems India given "significant evolution" that has happened in the Indian market, the utility vehicle maker to software services provider said on Wednesday. M&M holds 74 percent and BAE has 26 percent stake in the joint venture established in 2009 to manufacture armoured vehicles and mine protected vehicles among other land defence systems. "Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to institute a strategic review of the business," the company said in a notice to stock exchanges. The review will assess any changes necessary to address the evolving market and no decision has yet been taken on the way forward, M&M said. The government had in December rejected M&M's proposal to set up a jont venture with Israel's Rafael Advanced Defence Systems.