India’s auto giant Mahindra & Mahindra said it has agreed to sell control of its Japanese speciality steel business to joint venture partner Sanyo Special Steel co for Rs 146.32 cr.
Mahindra & Mahindra will sell 22% of the company, in which it used to own a 51% stake, and reduce its share to 29%.
With this, the Japan-based unit — called Mahindra Sanyo Special Steel Pvt Ltd — will no longer be considered a subsidiary whose numbers will be consolidated with M&M’s accounts.
This will reduce M&M’s total revenue by around 0.5%, as the company had revenue of Rs 918 cr last financial year.
The unit’s net worth was Rs 179 cr last year.
The transaction is expected to close by the end of next month.
Sanyo Special Steel is M&M’s partner for the speciality steel business, and is a Japanese company with a turnover of 139 bln yen or Rs 8,200 cr.
Speciality steel refers to steel that is designed for custom applications, such as for making high-strength parts in automobiles or engines.
M&M is India’s largest maker of sports utility vehicles, and also has a big presence in the commercial and agricultural auto markets.