CCI Clears M&M's ₹5.55 Billion SML Isuzu Acquisition

The Competition Commission of India on Tuesday cleared Mahindra & Mahindra Ltd.’s acquisition of a controlling stake in SML Isuzu Ltd., strengthening its position in the light commercial vehicles space.

In late April, M&M had announced plans to acquire a 58.96% stake in SML Isuzu for around ₹5.55 billion. The deal includes the purchase of Sumitomo Corp.’s 43.96% stake and Isuzu Motors Ltd.’s 15% stake at ₹650 per share.

As per regulatory norms, M&M will also launch an open offer to acquire up to 26% of SML Isuzu’s equity at ₹1,554.60 per share. If fully subscribed, the total deal value could rise to ₹11.40 billion, making M&M the promoter of the company.

The acquisition gives M&M access to SML Isuzu’s established presence among school, corporate, and intra-city fleet operators.

“The deal is expected to boost M&M’s LCV market share from around 3% currently to 10-12% by 2031-32, while SML Isuzu will likely contribute 2-3% to M&M’s revenues by 2026-27,” Nirmal Bang Institutional Equities said in a 29 April note.
M&M aims to grow its commercial vehicle market share beyond 20% by 2035-36.