Mahindra & Mahindra (M&M) on Friday said its subsidiary Mahindra Two Wheelers Europe will fully acquire France-based Peugeot Motocycles (PMTC) for an undisclosed amount.
Mahindra Two Wheelers Europe already has 51 per cent stake in PMTC.
This reaffirms the commitment of the Mahindra Group to the future growth of Peugeot Motocycles, M&M said in a regulatory filing.
"We are seeing positive momentum at Peugeot Motocycles. Kisbee becoming the largest selling 50cc vehicle in Europe, Peugeot Metropolis getting stronger in Europe and China, the positive market response to the new launch of the Urban GT connected Pulsion, are all cases in point," M&M President - FES & Two Wheelers Rajesh Jejurikar said.
The homegrown auto major, however, did not disclose financial details.
The acquisition would help the company introduce seven new products between 2019 and 2021.
Commenting on the deal, Peugeot Brand CEO Jean-Philippe Imparato said: "This decision by the shareholders will ensure that Peugeot Motocycles benefits from the expertise of a significant global player in the two wheelers industry."
He further said: "We at Peugeot will maintain our commitment through our utilisation of the Peugeot brand and extend our support to design and technological innovations."
The transaction will be completed after due process, M&M said.
The Peugeot brand will continue to be used in the future under the Trade Licence Agreement between PMTC and Peugeot, it added.
In addition, the Peugeot design teams will continue to assist in the design and development of PMTC products in close cooperation with the PMTC management and the Mahindra Group, M&M said.
The Mahindra Group has a diverse portfolio of businesses including the two-wheeler division and markets products under several brands including the Peugeot brand.
In October 2014 M&M had announced that it would acquire 51 per cent stake in Peugeot Motocycles (PMTC) for 28 million euro. The acquisition was completed in January 2015.
PMTC is a part of France-based PSA Group.