Mahindra & Mahindra (M&M) announced plans to acquire a 58.96 per cent stake in SML Isuzu for Rs 5.55 billion by purchasing shares from Sumitomo Corporation and Isuzu Motors Ltd. The move aims to enhance Mahindra’s footprint in the commercial vehicle sector.

As part of the transaction, M&M will acquire 43.96 per cent from Sumitomo Corporation and an additional 15 per cent from Isuzu Motors Ltd. The company will also launch an open offer for a 26 per cent stake, in compliance with the Securities and Exchange Board of India (SEBI) Takeover Regulations.

The acquisition aligns with Mahindra Group’s vision of achieving five-fold growth in emerging businesses. Anish Shah, CEO and Managing Director of Mahindra Group, stated that the deal reinforces the group’s focus on high-potential sectors supported by operational excellence.

Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sector, described the acquisition as a pivotal move towards becoming a full-range commercial vehicle provider. He highlighted synergies in platform consolidation, supplier networks, and plant utilisation.

Founded in 1983, SML Isuzu has a strong presence in the Indian truck and bus market. The acquisition is subject to approval from the Competition Commission of India and is expected to be completed within 2025.