IT may be a mere formality but Mahindra has today completed its acquisition of a controlling 51% share in Peugeot Motorcycles.
The firms announced their plans for the deal last October, with an arrangement that saw Mahindra paying €15 million in cash and buying another €13 million in shares. The total, €28 million. Peugeot’s scooter arm generated revenues of €99 million in the previous financial year.
Peugeot’s prominence in the scooter market has declined in recent years. It used to dominate in much of Europe – including the UK – with the Speedfight, a model that was perennially a chart-topper in the UK before cheap, Chinese machines started to eat into its position as a budget favourite. Mahindra has said it wants to help the firm regain its popularity in Europe while also expanding into the growth markets in India and Asia.
The firm intends to keep Peugeot’s products separate from Mahindra’s own machines, targeting the higher-end of the market with Peugeot branded scooters. However, it will also be looking to take advantage of Peugeot’s technology across its range.
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