M&M Acquires Turkish Tractor Maker

Mumbai, India – Mahindra & Mahindra (M&M) has acquired Turkey-based Erkunt Group’s tractor manufacturing business that stands fourth in the country, and also its foundry for ` 800 crore.

The Indian company will acquire 100% of the share capital of Erkunt Tractor Sanayii A.S and at least 80% of Erkunt Sanayi A.s, the foundry business that operates in the casting and manufacturing sector.

The foundry unit is a full-service provider — from castings to machining and focuses on engine blocks, cylinder heads and transmission cases — and has a strong customer portfolio, including JCB, MAN, Ford and Deutz. The foundry also gets 75% of its revenue from exporting to the European Union, the UK and other countries.

The deal provides M&M the advantage of a local presence in the large market with a wide product portfolio and dealer network. It also gains access to the Middle East, CIS and North African markets.

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