Mahindra Buys Stake in Mitsubishi Agribusiness

Mahindra and Mahindra Ltd. (M&M) announced last week it will pay ¥3 billion ($25 million) for a 33% stake in Japan’s Mitsubishi Agricultural Machinery Co. Ltd.

In a stock exchange notice, M&M said the two companies will jointly develop products such as tractors and farm equipment. They will finalize the sale October 1.

An executive for M&M said the acquisition will accelerate international expansion and provide a platform for both companies to leverage technology and product development.

Mitsubishi Agriculture is a subsidiary of Mitsubishi Heavy Industries. It makes tractors, harvesters and transplanters. Besides Japan, it is present in several southeast Asian countries and the U.S., and had a turnover of $408 million in 2015.

M&M is India’s leading farm equipment and tractor maker. S