Mahindra & Mahindra (M&M) has taken significant steps forward in its acquisition of SML Isuzu Limited by executing amendment agreements with Sumitomo Corporation and Isuzu Motors Limited. The automotive giant is set to acquire a substantial stake in SML Isuzu, marking a major move in the commercial vehicle sector.

Key Acquisition Details

M&M is acquiring a total of 85,33,053 equity shares of SML Isuzu, representing a 58.96% stake in the company. The acquisition breaks down as follows:

Open Offer to Public Shareholders

In addition to the direct acquisitions, Mahindra & Mahindra is making an open offer to the public shareholders of SML Isuzu. The offer details include:

• Up to 37,62,628 equity shares (26.00% stake)
• Offer price: Rs. 1,554.60 per share

Amendment Agreements

M&M has executed amendment agreements with both Sumitomo Corporation and Isuzu Motors Limited on July 29, 2025. These amendments introduce several key modifications to the original share purchase agreements:

1. Key Personnel Appointment: M&M's nominee will be appointed as a key managerial personnel of SML Isuzu on the closing date of the acquisition.

2. Parts Supply Agreement: The amendment with Sumitomo Corporation includes modifications to the delivery schedule for the supply of certain identified parts by Sumitomo or its affiliates to SML Isuzu for current vehicle manufacturing.

3. Name Change Resolution: Both amendments address changes in the timelines and manner of passing resolutions for effecting the name change of SML Isuzu.

Regulatory Approval

The Competition Commission of India has granted approval for the proposed acquisition and the open offer, clearing a significant regulatory hurdle for the deal.

Closing Remarks

This strategic move by Mahindra & Mahindra is expected to strengthen its position in the commercial vehicle market. The amendments to the acquisition agreements demonstrate M&M's commitment to ensuring a smooth transition and integration of SML Isuzu into its operations. As the deal progresses, industry observers will be keenly watching how this acquisition impacts the competitive landscape of India's automotive sector.

Mahindra & Mahindra (M&M), a leading Indian multinational automotive manufacturing corporation, has taken significant steps to reinforce its control over SML Isuzu, signaling a major shift in the company's strategic direction.

Management Changes and Integration Updates

M&M has implemented key management changes and integration updates aimed at strengthening its control over SML Isuzu. The company's primary objective is to achieve closer operations and foster future growth through improved supply chain management and enhanced brand unity between the two entities.

Strategic Amendments to Acquisition Agreements

According to the latest LODR (Listing Obligations and Disclosure Requirements) filing by M&M, the company has executed amendment agreements with both Sumitomo Corporation and Isuzu Motors Limited. These amendments modify the original Share Purchase Agreements (SPAs) and introduce several key changes:

1. Key Managerial Personnel Appointment: Both amendment agreements now include provisions for appointing M&M's nominee as a 'key managerial personnel' of SML Isuzu (referred to as the Target Company) on the closing date of the acquisition.

2. Supply Chain Modifications: The Sumitomo Corp. SPA Amendment Agreement includes changes to the delivery schedule for procuring certain identified parts from Sumitomo Corp. or its affiliates for current vehicles manufactured by SML Isuzu.

3. Name Change Process: Both amendment agreements incorporate modifications to the timelines and procedures for passing appropriate resolutions to effect a name change for SML Isuzu.

Acquisition Details

The strategic moves by M&M are part of a larger acquisition plan announced earlier:

• Acquisition of 63,62,306 equity shares (43.96% stake) from Sumitomo Corporation
• Purchase of 21,70,747 equity shares (15.00% stake) from Isuzu Motors Limited
• An open offer to acquire up to 37,62,628 equity shares (26.00% stake) from eligible public shareholders at Rs. 1,554.60 per share

Regulatory Compliance

M&M has confirmed that the Competition Commission of India has approved the proposed acquisition and the open offer. The company has duly informed the National Stock Exchange of India, BSE Limited, the Luxembourg Stock Exchange, and the London Stock Exchange about these developments, in compliance with SEBI regulations.

These strategic amendments and management changes underscore M&M's commitment to integrating SML Isuzu more closely into its operations. The move is expected to create synergies in the supply chain and strengthen the combined brand presence in the automotive market. As the acquisition process progresses, industry observers will be keenly watching how this consolidation impacts the commercial vehicle segment in India.