Mahindra & Mahindra likely to acquire Aston Martin this week

Monday 26 November 2012, 12:11 PM by

The iconic car maker, Aston Martin, has been in the news for quite some time now as there has been rumours that the British company might go for sale. While it was being speculated that Tata Motors, Mahindra & Mahindra (M&M), some Chinese car makers and many others are likely to bid for the company, the new picture, however, suggests that M&M is the front runner and might strike a deal with the company by the end of this week.

Sources familiar with the matter on condition of anonymity said that M&M is all set to beat its closest contender, Italian private equity fundInvestindustrial to take over the British car maker. However, the talks are still going on with Aston Martin's current shareholders and management and no final decision has been reached as of now. Earlier on Saturday, it was reported by Bloomberg that M&M had bid higher than the Italian Private Equity fund for a 50 per cent stake in the company. M&M in the beginning is likely to have a minority stake of 50 per cent but it would have the option of raising it to 50 per cent. The residual stake will, however, be retained by the three current shareholders. The operations team is also likely to remain the same, after the new strategic partner comes in.

M&M had last year acquired the South Korean auto maker Ssangyong and if it manages to strike a deal with the iconic British car maker, it would be another big achievement by the Indian car maker. Mahindra's SUVs are already popular in the foreign market and if it acquires Aston Martin, its presence in the international market would grow even more. As the company officials have been tight lipped about the ongoing deal, it cannot be said with certainty that M&M is on the verge of acquisition of Aston Martin; however, the latest buzz in the media from different sources clearly indicates that M&M is likely to add another feather to its cap.

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