Acquisition

The major advantage for M&M after this acquisition is that it would now have access to some of the renowned customers of Jeco, which includes names like Daimler Chrysler, ZE Group, Volvo & Renault, to name a few. Also, M&M would be able to use a capacity of one hundred thousand tonnes per annum and a total turnover of $229.26 million, which Jeco currently has. The latest deal is also important for M&M, as it will allow the company to serve the auto component needs of its present customers based in three major locations of Germany, UK & India. Although, M&M would currently own the stakes in the acquired firm through a Mauritius-based subsidiary, later it will be transferred to Mahindra Automotive and Steels Ltd.

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Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006