Mahindra And Mahindra Ltd To Purchase Navistar International Corp's Stake In India Joint Ventures

Mahindra And Mahindra Ltd and Navistar International Corp announced that Mahindra intends to purchase Navistar Group's stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL). Following the purchase, both MNAL and MNEPL would become wholly owned subsidiaries of Mahindra. Mahindra would take complete ownership of operations and continue to sell MNEPL and MNAL products. The sale requires regulatory approval in India , is subject to the conclusion of definitive agreements, and is expected to be completed in early 2013. The terms of the proposed transaction call for Mahindra to pay approximately INR1.75 billion, or $33 million , for Navistar Group's stake in both ventures. The agreement allows Navistar to continue sourcing components from India while Mahindra would continue to provide engineering services to Navistar. Navistar group would continue to support M&M through a license agreement and extend necessary support to MNAL and MNEPL for the purposes of business continuity.