MTWL makes binding offer to acquire 51% stake in Peugeot Motocycles

Mahindra Peugeot takeover
From Left—Dr Pawan Goenka, Executive Director – Mahindra & Mahindra Ltd and Mr Rajesh Jejurikar, Chief Executive – Farm Equipment & Two Wheeler Division & Member of the Group Executive Board, Mahindra & Mahindra Ltd at the press meet today announcing Mahindra Two Wheeler’s acquisition of 51% stake in Peugeot Motocycles.

Mahindra Two Wheelers Ltd. (MTWL) has made a binding offer to acquire 51% stake in Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in France. Peugeot Scooters, the worlds’ oldest motorised two-wheeler manufacturer is a recognised name in urban mobility in Europe for over a century.

Peugeot Scooters comprehensive range of scooters and mopeds includes 50-400 cc offerings, including its three wheeled scooter Metropolis in Europe. Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra opines that Mahindra and Peugeot coming together is a winning proposition for both two wheeler businesses by combing access to Indian market, mass market product tech, competence in marketing, premium range, established European footprint, and a globally recognised reputation, enabling MTWL and PMTC to grow international expansion.

Peugeot Django Heritage 2014
Peugeot Django Heritage 2014

In recent times, Mahindra has strengthened its two wheeler segment presence globally. Mahindra Racing competes in Moto3 in MotoGP, and Mahindra GenZe electric two wheelers in US offer sustainable urban transport solutions to new gen customers. MTWL has sales and distribution operations in Latin America, Africa and South Asia and also assembly operations in these markets.

MTWL looks to support PMTC’s global growth and brand building efforts, keeping its ‘Frenchness’ in the forefront. PSA would support brand and growth strategy through its longterm minority share holding. Similar to Mahindra group’s approach as in its acquisition of Korean automaker, SsangYong, MTWL is committed to PMTC’s current leadership team.