New Delhi, Apr 26 (PTI) Mahindra & Mahindra on Saturday said it will acquire a 58.96 per cent stake in commercial vehicle maker SML Isuzu for Rs 555 crore.

As part of the transaction, the Mumbai-based automaker would acquire the entire stake of 43.96 per cent held by Sumitomo Corporation, promoter of SML, and separately acquire a 15 per cent stake held by Isuzu Motors Ltd, public shareholder of SML, for an aggregate consideration of Rs 555 crore.

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Besides, the automaker will make an open offer to acquire a 26 per cent stake in SML Isuzu in accordance with SEBI Takeover Regulations, Mahindra & Mahindra (M&M) said in a statement.

"The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses," Mahindra Group CEO & MD Anish Shah said.

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This acquisition is aligned with the company's capital allocation strategy for investing in high-potential growth areas which have a strong right to win and have demonstrated operational excellence, he added.

M&M Executive Director and CEO Auto and Farm Sector Rajesh Jejurikar said SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra's existing offerings in the trucks and buses segment.

"This acquisition is a pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and better plant utilisation," he added.

He further said: "Together, we are well-positioned to scale rapidly and drive profitable growth."

The transaction, including the open offer, is subject to the approval of the Competition Commission of India and is expected to complete within 2025 in accordance with SEBI Takeover Regulations, M&M said.

Incorporated in 1983, SML Isuzu has a presence in the trucks and buses segment.

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