Mahindra & Mahindra (M&M) has completed the buyout of the stake of Navistar International Corporation in two joint ventures — Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL).
M&M, in a filing to the stock exchanges, today said that it had taken complete ownership of the operations with the agreement getting regulatory approvals. It would continue to sell MNAL and MNEPL products.
Navistar’s exit from the joint venture came in the wake of its decision to focus on its North American core operations and pursue efforts to “improve the company’s return on invested capital (ROIC) performance’’.
Navistar would continue to source components from India and M&M would offer engineering services to Navistar which would extend support to the Indian company through licence agreements.
Reiterating its commitment to the truck and engine companies, M&M said it would strive to leverage the synergies between these two businesses and the M&M group for making the commercial vehicle business a success.
The company, which launched new models including 25T tipper, has planned to introduce refrigerated trucks.