Mahindra, Aston deal off? | autos | Hindustan Times
Today in New Delhi, India
Dec 04, 2016-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Mahindra, Aston deal off?

autos Updated: Dec 06, 2012 13:00 IST

Autocar India
Highlight Story

M-amp-M-seem-to-have-lost-interest-in-the-capital-injection-only-deal

Mahindra & Mahindra seems to have all but pulled out of the race to buy a stake in luxury sports car brand Aston Martin.



Aston Martin’s long list of debts and the fact that only a capital injection was being sought have apparently caused the Mahindras to lose interest. Kuwait-based company, The Investment Dar, which is the half owner of Aston Martin, is also undergoing financial problems, which could lead to further instabilities.



Earlier, both Indian conglomerate Mahindra & Mahindra and Italian buyout firm Investindustrial were reported to be vying to invest in Aston, with the former offering a significantly greater cash injection and the latter offering less financial support but a technical partnership with Mercedes and AMG.



Earlier, Investindustrial were favourites to secure the £250m (Rs 2,189.3 cr) deal, but M&M then moved ahead in negotiations and became the favoured partner. That would have meant that M&M would have owned 40 percent of the company and had 50 percent of the voting rights.