Indian auto maker Mahindra & Mahindra said it has agreed to increase its voting rights in Scandinavian farm equipment maker Sempo to 49.04% from 35% by acquiring shares and convertible instruments at a cost of 4.66 mln euros, or around Rs 37.74 cr.
Sempo, founded in 1853 in Finland, had revenue of around 52 mln euros for the year ended September 2018, up from 40 mln in the previous year, but down from 53 mln in the year before.
The company manufactures combine harvesters and forest machinery.
Sempo is well-known for its mid-sized combine harvesters in Europe, Eurasian countries and North Africa, said Mahindra & Mahindra.
The Finnish firm also has a joint venture for making combine harvesters in Algeria in North Africa.
“Together with its existing strategy in the core markets, Sampo is developing a new range of combine harvesters for developing markets and for specialty crops,” the Indian company said.
M&M said the two companies will now jointly focus on the combine & specialty harvester business in Asia, Africa and Eurasian Economic Union countries and Latin America.
The investment will help M&M get a firmer foothold in the combine harvester market. It is already one of the world’s largest makers of tractors.