Mahindra acquires BSA Company for an amount of around Rs. 28 crore; 100 percent stakes bought in the UK-based motorcycle manufacturer
Mahindra is known for their aggressive expansion strategy in Indian market and around the world as well. Now the company acquires UK-based motorcycle manufacturer BSA Company at around Rs. 28 crore. Mahindra & Mahindra has been long contemplating between motorcycle manufacturers Norton and BSA, and now it has decided to go for the latter.
The acquisition of BSA Company was made by Classic Legends Pvt. Ltd, which is a subsidiary of Mahindra & Mahindra. With this acquisition, Classic Legends has right to obtain license of BSA brand and utilize the same for selling, marketing motorcycle around the world. Incidentally, the principal activity of BSA is licensing of motorcycle brands.
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Incorporated in UK, BSA also has presence in several other countries like USA, Canada, Singapore, Malaysia, Mexico, and Japan as well. With the acquisition of BSA, Mahindra & Mahindra will get a strong opportunity to step into these global markets, and expand its business further. The company bought 51% per cent stake in Peugeot Motorcycles last year, which made it the major decision maker in the company.
In automotive space Mahindra is known for making cars and specialization in SUVs for quite long time. The company has recently started showing interest in two-wheelers as well. Named as Mahindra Two-Wheelers the company sells both motorcycles and scooters in Indian market. With acquisition of iconic brand like BSA, and gaining control in Peugeot Motorcycles, the company’s ambition is clear. It wants to grow bigger in global two-wheeler market.
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Apart from acquisition of BSA and buying larger shares in Peugeot Motorcycles, Mahindra & Mahindra has acquired 76.06% stake in Italian design house Pininfarina, which is known for designing Ferrari cars. Also, the Indian company has previously purchased South Korean automakers like SsangYong, SYM. In EV segment also, Mahindra is proving to be a leading brand in Indian market.