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Indian automobile maker Mahindra & Mahindra has completed its purchase of the Italian automobile design firm Pininfarina in a deal believed to be worth €168 million. The design firm already works with Mahindra on its SUV model and previously on the Halo electric sports automobile concept that the Mumbai-based company unveiled last year.
In total, Mahindra along with Tech Mahindra Ltd., has agreed to purchase 76.06 per cent of Pininfarina, with a 60/40 split between Tech Mahindra and Mahindra & Mahindra respectively. "Pininfarina will add enormous value to Tech Mahindra's portfolio of engineering services. But just as important is the fact that the legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group", said Anand Mahindra, Chairman of the Mahindra Group. He added: "Given the increasing design sensibilities of today's consumers, product design will greatly influence customer choice and experience, and hence our success".
Paolo Pininfarina, Chairman of Pininfarina S.p.A, added: "In a globalised world, entrepreneurship and capital do not need a passport. We are joining hands with a €3.5 billion Technology & Global partner, and part of the €15.5 billion global Mahindra Group, which will not only strengthen our Italian identity but will open more doors. Tech Mahindra's global presence and global delivery model will allow us to compete for a larger pie of the business".
This latest acquisition by the Indian conglomerate follows the takeover of South Korean automobile maker SsangYong as well as the motorcycle division of the PSA/Peugeot-Citroen Group. It is believed that in addition to the stock purchase Mahinda plans to invest a further €20 million in Pininfarina as well as providing a guarantee to the company's creditors of €114.5 million.