01 December, 2020

Four-Wheel Cruise

After Scorpio's success, M&M is spreading its wings

Four-Wheel Cruise
Just a few weeks ago, he nearly inked what would have been the biggest acquisition deal in India's corporate history. But the US-based Agco quoted an amazingly high price (600 million Euros) to take over Valtra, the tractor division of the Finnish firm Kone. Anand Mahindra is not unhappy with the lost opportunity. Explains the undeterred 48-year-old CEO of Mahindra and Mahindra (M&M): "This may be the first bid, but not the last. Bids have to be viable and profitable, and not to impress anybody."

What he's hinting at is that it was not worthwhile to match Agco's bid, nearly twice that of M&M's. Sources hint that the US firm quoted a huge amount only to block M&M's entry in the neighbouring South American market. Surely, Agco was wary of the Indian auto and tractor maker, which has already carved out an impressive marketshare in the US. This May, M&M inaugurated its second tractor plant in Georgia (US) and plans two more in the country in the near future; its first unit in Houston commenced production in 1994.

The still-born Valtra initiative and the successful...


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