M&M to cut production by 25 pc on semiconductor shortage
The company, however, said there will be no impact on the production ramp-up and launch plans of its new SUV XUV7OO.
Mahindra & Mahindra (M&M) on Saturday announced that signed a share agreement to acquire Fifth Gear Ventures Ltd (FGVL), for a consideration not exceeding Rs 30.45 crore.
The Fifth Gear Ventures Ltd (FGVL) operates an e-commerce market platform via www.carandbike.com for new and used cars and bikes. It also provides automobile comparison services to their users along with updating and educating them about the latest information and reviews from the industry.
Mahindra First Choice Wheels Ltd (MFCWL), a subsidiary of the company, has signed a share purchase agreement to acquire fully Fifth Gear Ventures Limited (FGVL), in one or more tranches, M&M said in a regulatory filing.
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Upon acquisition of the stake, FGVL would become a subsidiary of MFCWL, the company said, adding, “Acquisition is to be completed by March 31, 2020.”
With this agreement, M&M aims to expand MFCWL’s presence in the digital automotive space.
Mahindra and Mahindra operates in automotive segment comprising of sales of automobiles, farm equipment and sale of spare parts.
M&M’s shares rose 0.15 per cent to Rs 568.25 apiece on BSE on January 17.
(With input from agencies)
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