The Mahindra & Mahindra Group formed a global alliance with Spain’s CIE Automotive to form an auto components company with a global presence and revenues of over Rs 15,000 crore.
The integration will see a consolidation of five M&M group companies and the forging of businesses of CIE Automotive under Mahindra Forgings, which will be subsequently renamed Mahindra CIE. The Spanish partner will invest around $100 million (Rs 570 crore) in the company, which is listed on the Bombay Stock Exchange.
The Spanish company will hold a controlling 46-52% stake in Mahindra CIE, while M&M will hold about 20%. The Indian group will get a 13.5% stake in CIE Automotive, which is listed in Spain, becoming the second largest shareholder in the company and nominate two directors on its board. The stake is valued at Rs 750 crore.