CCI nod impact: Mahindra & Mahindra, Delhivery shares rise up to 2%

Mahindra & Mahindra (M&M) and Delhivery shares recorded notable gains on June 18 after the two firms received approval from the Competition Commission of India (CCI) for their respective stake acquisitions of SML Isuzu and Ecom Express.

Mahindra & Mahindra:

Mahindra & Mahindra on June 17 announced that CCI has unconditionally approved the automaker's proposal to acquire 59 percent majority stake in heavy vehicle-maker SML Isuzu Limited. M&M had earlier informed exchanges that it has entered into an agreement to acquire the entire stake of 43.96 percent held by Sumitomo Corporation, the promoter of SML, and separately also acquire 15 percent stake held by Isuzu Motors Ltd, public shareholder of SML, for an aggregate consideration of Rs 555 crore.

CCI had also approved the M&M's proposal to make an open offer for acquiring up to 37.62 lakh equity shares of SML at a price of Rs 1,554.60 apiece. The acquisition will double Mahindra's market share in the trucks and buses segment of India's fast-growing economy to six percent, with a plan to raise that to 12 percent by fiscal year 2031, Mahindra had earlier said.