The agreement was signed and sealed between Mahindra Two Wheelers (MTWL) and Peugeot Motocycles (PMTC) and necessary formalities have been completed while a new Board of Directors has been constituted. The alliance between MTWL and PMTC was announced in October 7, 2014 which has now been completed with Mahindra Two Wheelers investing €15 million into PMTC for financing of future projects while the company also purchased shares held by Peugeot scooters to acquire 51% stake.
The acquisition satisfies all regulatory, legal and financial conditions of the agreement completed smoothly by MTWL and PMTC in quick time. factoring in employee dialogue process and Anti-trust law, the Works Council consultation process is completed.
Mahindra Two Wheelers and Peugeot Motocycles’ strategic partnership enables both companies to accelerate global expansion plans, which works to the advantage of both companies. A new Board of Directors has been constituted which comprises Dr. Pawan Goenka – Director MTWL and Executive Director, Mahindra, Mr. V.S.Parthasarathy – Director MTWL, Chief Financial Officer, Group CIO, Mahindra Ltd and Mr. Rajesh Jejurikar – Director Mahindra Two Wheelers, Chief Executive-Farm Equipment and Two Wheeler Division, Mahindra along with Mr. Maxime Picat – Chief Executive Officer, Peugeot Brand and Mr. Emmanuel Delay – Executive Vice President, Operational Director, India-Pacific.
MTWL is a part of the US$ 6.5 billion Mahindra Group. Peugeot Motorcycles are at the forefront of urban mobility across Europe for the past 116 years. The oldest two wheeler manufacturer, the company offers a range of scooters and mopeds ranging from 50 cc to 400 cc while its range is also noted for the three wheeler scooter Metropolis launched in European markets.
Dr. Pawan Goenka says Mahindra is committed to the long term growth of Peugeot Motocycles. He expressed confidence that this relationship is one of one of mutual respect, trust and learning. MTWL and PMTC will drive synergies and leverage respective strengths to benefit both partners.