Indian auto giant Mahindra and Mahindra Ltd on Wednesday said it has acquired Turkish tractor maker Erkunt Traktor Sanayii AS and its foundry business for Rs 800 crore through Mahindra Overseas Investment Co.(Mauritius) Ltd.
The buyout will provide the company access to Turkish agricultural machinery market, the fourth largest globally, and help the Mumbai-based firm enhance its product portfolio. The transaction, subject to regulatory approval, is expected to be completed by 30 November.
“Turkey is a very strategic market for us; therefore through Hisarlar Makina Sanayi ve Ticaret Anonim Şirketi (Hisarlar) acquisition, which specializes in implements and the one we have announced today, we are putting a firm foot in the Turkish tractor market, a market which is two-third the size of India,” said Pawan Goenka, managing director at Mahindra and Mahindra.
Mahindra had acquired 75.1% in Hisarlar, a Turkish farm equipment company on 21 January.