Indian auto major Mahindra & Mahindra has completed the entire buyout of its stake in US-based Navistar in two joint ventures – Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL). The deal has received regulatory approval in India and Mahindra has now taken complete ownership of operations and will continue to sell MNAL and MNEPL products.
In December 2012, Navistar had announced its intention to exit the joint venture as part of its strategy to focus on strengthening North American core businesses. “Mahindra has been a valuable partner these last seven years and they are well quipped to move the MNAL and MNEPL businesses forward as the Indian market continues to develop,” said Troy Clarke, president and chief operating officer, Navistar.
As part of the agreement inked by both the firms last year, Navistar would continue sourcing components from India while Mahindra would continue to provide engineering services to it. “The Navistar group will continue to support Mahindra through licence agreements and extend necessary support to MNAL and MNEPL for purpose of business continuity,” the companies said.