Mahindra and Mahindra (M&M) on Wednesday said it has increased stake in its Finland-based arm Sampo Rosenlew Oy to 79.13 per cent with the acquisition of additional 1,050 shares for Rs 31.15 crore.

Sampo Rosenlew is a leading player in combine harvesters’ market, well-known for mid-sized combine harvesters in the markets of Europe, Eurasian countries and North Africa and is also a joint venture partner for combine harvesters in Algeria, the company said in a regulatory filing.

The company has subscribed to 1,050 equity shares of Sampo. Pursuant to the said transaction, the voting rights of the company in Sampo would increase from 74.97 per cent to 79.13 per cent, M&M said.

“Total acquisition cost is 34,99,650 euros (1,050 equity shares at 3,333 euros per share) -- equivalent to around Rs 31.15 crore at the foreign exchange rate of Rs 89 per euro,” the filing said.

M&M said together with its existing strategy in the core markets, Sampo is working on a new range of combine harvesters for developing markets and for specialty crops.

“The company and Sampo will jointly focus on the combine and specialty harvester business in Asia, Africa and Eurasian Economic Union countries and Latin America,” it said.

Sampo had a total revenue of 49 million euros for the year ended March 31, 2020.

On the objective of the acquisition, M&M said its scale in tractors and Sampo’s expertise in combine harvesters allow both companies to offer a broader product portfolio to address the needs of farmers in various countries.

“In India, the combine harvester market is currently much smaller than tractors but is growing rapidly with the penetration of mechanisation. It is imperative that the company builds a strong position in this product line for India and other export markets,” it added.

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