M&M Expands Reach: Major Stake Acquired in SML Isuzu

Mahindra & Mahindra Ltd. (M&M) has acquired a 58.96% stake in SML Isuzu Ltd., marking a strategic expansion in the commercial vehicle segment. This acquisition, alongside a planned open offer, aims to significantly increase M&M's market presence. The Board of SML has been restructured post-acquisition.

In a strategic move to consolidate its market presence, Mahindra & Mahindra Ltd. (M&M) announced the acquisition of a 58.96% stake in SML Isuzu Ltd. M&M purchased the shares from Japan's Sumitomo Corporation and Isuzu Motors Limited and plans to launch a mandatory open offer for an additional 26% stake from public shareholders, in alignment with SEBI regulations.

The acquisition has prompted a reconstitution of the Board of Directors at SML, with Vinod Sahay, the President of Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, appointed as the Executive Chairman of SML Isuzu, effective August 3, 2025. Additionally, Dr. Venkat Srinivas has been named Executive Director & CEO, commencing August 1, 2025.

The transaction, priced at Rs 650 per share for the 58.96% stake, totals an investment of Rs 555 crore. This is a significant step for M&M in the >3.5T commercial vehicle segment, where it aims to bolster its current 3% market share. SML, known for its robust presence in the trucks and buses sector since 1983, will be renamed 'SML Mahindra Limited,' subject to regulatory approvals.

(With inputs from agencies.)