Auto major Mahindra & Mahindra today said it has completed the entire stake buyout of US based Navistar in two joint ventures - Mahindra Navistar Automotives and Mahindra Navistar Engines.
"M&M has completed its purchase of the Navistar Group's stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL)," Mahindra & Mahindra Ltd (M&M) and Navistar International Corporation said in a joint statement to the BSE.
The deal has received regulatory approval in India and Mahindra has now taken complete ownership of operations and continues to sell MNAL and MNEPL products, they said.
M&M has bought the remaining 49 per cent stake in the joint venture with US-based Navistar International Corp. Financial details were not disclosed.
"Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra's Truck and engine businesses continuing to play a critical role in helping us achieve this goal," M&M President Automotive and Farm Equipment Sectors Pawan Goenka said.
In December last year, Navistar had announced its intention to exit the joint venture as part of its strategy to focus on strengthening North American core businesses.
"Mahindra has been a valuable partner these last seven years and they are well quipped to move the MNAL and MNEPL businesses forward as the Indian market continues to develop," Navistar President and Chief Operating Officer Troy Clarke said.
As part of the agreement inked by both the firms last year, Navistar would continue sourcing components from India while Mahindra would continue to provide engineering services to it. "The Navistar group will continue to support Mahindra through licence agreements and extend necessary support to MNAL and MNEPL for purpose of business continuity," the companies said.