Mahindra Pininfarina deal rejected by Italian creditor banks
According to an Italian newspaper Il Messaggero’s report, Mahindra Pininfarina acquisition deal has been rejected by three or four creditor banks of the design studio. The rejection is reported to be due to the Indian conglomerate’s contemplation of writing off half of Pininfarina’s debts which amount to 87 million euros. Such a move would have been detrimental to the creditor banks.
The Italian newspaper was not able to extract an official statement from any of the entities involved. The publication reports that Pininfarina will now seek for a debt restructuring. It’s to be noted that ever since the news of acquisition emerged, shares of the Italian design firm started gaining.
The debt-ridden Pininfarina is in a dire need of financial stability which would have been given by Mahindra had all the creditors agreed. The company which has penned several of world’s most iconic cars including Ferraris, Maseratis and regular road cars would have enhanced Mahindra’s brand equity in the global arena.
Mahindra has been in an acquisition spree in the recent years. While Ssangyong episode is so far so good, the company’s bid to acquire Jaguar Land Rover and Aston Martin (reported) didn’t pan out. Mahindra also briefly owned Italy-based Engines Engineering.