Mahindra & Mahindra is rumoured to be the top bidder for a stake in Aston Martin and has apparently out-bid Investindustrial, the previous owners of Ducati motorcycles. However, reports say the negotiation process with the other shareholders and the company’s top officials is still underway.
Kuwait based The Dar Investment Company (TID) had been looking to sell its stake in the iconic British sports car maker to settle a debt of 4.9 Billion Dollars. According to a report in the Economic Times, If the Indian SUV major is successful in the bid, it will pick up a 40 per cent share stake for which it would have to pay somewhere between 190-320 million dollars. Mahindra will also get the option to raise this stake to 50 per cent over the next four years.
Mahindra buying a stake in Aston Martin will benefit both companies in terms of research and development. While Mahindra will be able to expand and improve its line up using Aston Martin technology, the British automaker, one of the surviving few without the backing of a big manufacturer, will get access to much needed funds. All the parties involved in the bidding have refused to comment on the issue so far.
Source: Economic Times
