Mergers, Acquisitions and Takeovers Case Study

Mahindra & Mahindra’s Acquisition of Punjab Tractors

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Abstract:
Mahindra & Mahindra Ltd (M&M) acquired a stake of 43.3% in Punjab Tractors Ltd (PTL), and made an open offer to acquire an additional 20% stake in PTL. The acquisition would increase M&M's geographic presence and would also enable the company to enter new segments (various horsepower (hp)). But in order to do that, M&M had to face several challenges, such as labour unrest and the rivalry with the Punjab government. Hence, the analysts were sceptical whether the deal would turn out to be profitable for M&M.

Pedagogical Objectives:

• To analyse the rationale of the acquisition of Punjab Tractors
• To analyse the potential and challenges of the deal on M&M.
• To analyse the political impact on any merger deal.

Keywords : Swaraj Motors, Escorts, Tractors and farm equipment (TAFE), Hindustan machine tools, New Holland India, John Deere, Deutz-Fahr, Farm equipment segment (FES), Horsepower, Bhoomiputra, Jiangling Motors Company, Eicher, Yanmar, North-based international tractors, Hinduja group, Ashok Leyland

Contents : 
Indian Tractor Industry: Turning Around
Geographic Classification of Indian Tractor Industry
Mahindra & Mahindra Ltd: The Leader in Indian Tractor Market
M&M Acquisition of Punjab Tractors Ltd