M&M to acquire Finland-based Sampo Rosenlew Oy for Rs 35.57 crore

Representative image

Mahindra & Mahindra on July 18 announced the acquisition of Finland-based combine harvester company Sampo Rosenlew Oy for Rs 35.57 crore.

M&M informed the stock exchanges that it has "today executed an Option Exercise Share Purchase Agreement" to acquire 1,317 equity shares of Sampo Rosenlew Oy.

The acquisition is being made at a "price of Euro 3,333 per share aggregating Euro 43,89,561 (equivalent to around Rs. 35.57 crores)", the Anand Mahindra-led conglomerate said in a regulatory filing.

The consideration will be paid in cash, M&M said, adding that the indicative time period for completion of the acquisition is "August 2022".

M&M held a 79.13 percent stake in Sampo Rosenlew, and pursuant to the said transaction, the company's shareholding and consequent voting rights would increase to 100 percent.

Sampo had a total revenue of Euro 52 million for the year ended March 31, 2022, M&M said, further noting that the company's turnover was  Euro 55 million in fiscal year 2020-21 and Euro 49 million in FY20.

The objective of its acquisition, M&M said, is to "jointly focus on the combine and specialty harvester business in Asia, Africa and Eurasian Economic Union countries and Latin America".

Sampo, notably, was founded in 1853 and is based out of Pori, Finland. The company has a market presence in Europe and Algeria.