Mahindra & Mahindra (M&M) is reportedly in advanced discussions to acquire the entire stake held by Japan\u2019s Sumitomo Corporation in Indian commercial vehicle manufacturer SML Isuzu, according to a CNBC-Awaaz report. <\/small><\/p>\n\n\n\n
The potential acquisition could mark M&M\u2019s strategic entry into the trucks and buses segment, allowing it to expand beyond its current portfolio of passenger and light commercial vehicles. Sources told the channel that M&M is evaluating a share price of \u20b91,400\u20131,500 for SML Isuzu in the proposed deal. <\/small><\/p>\n\n\n\n
Following the news, SML Isuzu shares surged 7.9 per cent intraday to hit a high of \u20b91,785.80. At 2:40 pm, the stock was trading 5 per cent higher at \u20b91,738.40, with the company’s market capitalisation reaching \u20b92,518.57 crore. The stock has a 52-week high of \u20b92,406.00 and a 52-week low of \u20b91,030.90.<\/p>\n\n\n\n
The report further stated that M&M\u2019s board is expected to meet this week to assess the acquisition proposal. In response, M&M told the channel that it \u201cdoes not wish to comment on the speculation.\u201d <\/small><\/p>\n\n\n\n
As of December 2024, Sumitomo Corporation owned 43.96 per cent of SML Isuzu, according to stock exchange data. Japan\u2019s Isuzu Motors, known globally for its SUVs and pickup trucks, holds a 15 per cent stake in SML Isuzu through a separate entity.<\/p>\n\n\n\n
The company\u2019s recent financial performance has been under pressure. SML Isuzu\u2019s net profit plunged 80.22 per cent to \u20b90.53 crore in the quarter ending December 2024, compared to \u20b92.68 crore in the same period a year earlier. Sales fell 14.07 per cent year-on-year to \u20b9331.80 crore from \u20b9386.13 crore.<\/p>\n\n\n\n
Meanwhile, M&M shares were trading 1.27 per cent lower at \u20b92,766 apiece on the BSE at 2:40 pm on March 24. <\/small><\/p>\n\n\n\n
This is not the first time a potential acquisition for SML Isuzu has been reported. In June 2023, CNBC-TV18 reported that JBM Auto was among the frontrunners to acquire SML Isuzu, as Sumitomo Corporation was seeking to exit its India operations. <\/small><\/p>\n\n\n\n
If the deal goes through, M&M\u2019s foray into the heavy vehicle segment could intensify competition in India\u2019s commercial vehicle space, currently dominated by Tata Motors and Ashok Leyland.<\/p>\n\n\n\n
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