Germany-based Mutares SE & Co will acquire an 80% controlling stake in Peugeot Motocycles, the French subsidiary of Mahindra & Mahindra.

The Mumbai-based auto giant said in a statement on Thursday that Mutares had submitted an irrevocable binding offer to acquire a 50% stake and an 80% controlling stake in France-based Peugeot Motorcycles (PMTC) right.

As part of the deal, Mutares Holding’s wholly-owned entity, Purple, will invest €7 million in PMTC, which will give it a 50% stake and 80.01% voting rights in the French company.

Mahindra & Mahindra (M&M) said it remains a joint shareholder, supporting the launch of new products and expected strong growth in the coming years. It added that the deal is expected to close in the first quarter of 2023, subject to approval by antitrust authorities, following consultations with the work councils.

Following the transaction, PMTC and its subsidiaries Peugeot Motocycles Italia, PMTC Engineering and Peugeot Motocycles Deutschland GmbH will cease to be subsidiaries of Mahindra Two Wheelers Europe Holdings (MTWEH).
PMTC’s revenue in Mandeure (France) is approximately €140 million. It produces two- and three-wheeled motorcycles, distributed in 3,000 points of sale through subsidiaries, importers and distributors on three continents, French and international.

The company has a manufacturing facility in Mandeure, a joint venture with JNQQ (Jinan Qingqi Motorcycle Co Ltd) in China, and manufacturing partnerships with several major Asian companies, including Vietnam’s THACO.

Commenting on the deal with Mutares, Rajesh Jejurikar, executive director of M&M’s car and farm division, said the company’s efforts aimed to preserve a French heritage brand that has delighted customers for 124 years.

He added: “With a proven track record in European corporate transformation, coupled with their expertise in the automotive business, Mutares is the ideal partner to strengthen and grow the brand with the continued support of M&M.”

This is the company’s 13th acquisition in 2022, said Johannes Laumann, Mutares’ chief information officer. “Peugeot Motorcycles is an internationally renowned brand with a long history and is the oldest manufacturer of motorised two-wheelers in the world.

In addition, Laumann added that thanks to Peugeot Motorcycles as an original equipment manufacturer (OEM), Mutares sees great potential for strong synergies in its automotive and mobility segments.

In October 2014, M&M announced the acquisition of a 51% stake in PMTC for €28 million. The acquisition was completed in January 2015. In 2019, M&M announced that its subsidiary MTWEH would fully acquire PMTC for an undisclosed amount.

Mutares, a listed Munich-based private equity holding company, has made an extraordinary acquisition of a European mid-sized company showing the potential for significant operational improvement and sold it again following a repositioning and stabilisation process.