From Turkey and Egypt to the Gulf, Indian companies continue to show an appetite for emerging markets. Mahindra acquires Turkish tractor firm
Mumbai-based Mahindra and Mahindra Ltd has acquired Erkunt Traktor Sanayii AS, a Turkish tractor maker and its foundry business for Rs 800 crore ($123 million) through Mahindra Overseas Investment Co.(Mauritius) Ltd.
The buyout will provide the company access to Turkish agricultural machinery market, the fourth largest globally, and help it enhance its product portfolio.
Mahindra has already acquired 75.1 per cent in Hisarlar, a Turkish farm equipment company earlier this year.
Pawan Goenka, managing director at Mahindra and Mahindra, said that the latest buyout is part of a larger strategy that has globalisation and diversifying product portfolio beyond tractors, as two important pillars of growth strategy for the farm equipment business.
After this acquisition, Mahindra will be focusing on consolidating its presence in the overseas markets it has recently entered – these including Brazil, Turkey, Japan and Algeria.
As part of the agreement, Mahindra will acquire 100 per cent of the share capital of Erkunt Traktor and at least 80 per cent of Erkunt Sanayii A.S, which is held by Erkunt Traktor.
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