Months of negotiations and much speculation, the dust has finally settled, and the news is out that home-grown conglomerate Mahindra Group has officially acquired the Italian car design house, Pininfarina for whooping $28 million. The company is now jointly held and controlled by Tech Mahindra and Mahindra and Mahindra (M&M). The former will have 60% ownership while the latter will have a 40% stake.
Mahindra has also revealed that it will in future acquire the remaining shares soon and will also inject more funds into the design and style company before the end of 2016.
The company will remain listed on the Milan exchange as an independent company, and Mr. Paolo Pininfarina is continuing as the Chairman of its board.
Mahindra is trying to strengthen its presence in the automobile and industrial design space by acquiring Italian Design Company – Pininfarina for an outlay of 50 million Euros following months of negotiation.
Mahindra had already expressed its desire to acquire in March, but no agreement was made then. The acquirement has been received without much fervor by the investors and M&M were up trivially by 0.6% while Tech Mahindra shares were down 1.5%.
Pininfarina is a well-known high-end design company and will significantly boost the design capabilities of the Mahindra group.
Mahindra Group Chairman, Anand Mahindra said that the acquisition will add enormous value to Tech Mahindra’s engineering services. Pininfarina’s has a European presence and it will open new doors for Tech Mahindra’s global presence and will enable it to compete more efficiently in the tech world globally.
Pininfarina’s outstanding design experience and its integrated engineering solutions will enable Mahindra to make a strong entry into automotive styling, design development and engineering capabilities.