Mahindra & Mahindra in talks to buy Kinetic Motors

Mahindra & Mahindra (M&M), India’s largest utility vehicle maker, is in talks to acquire Kinetic Motors, the Pune-based two-wheeler manufacturer. The move signals M&M’s interest in the two-wheeler segment, which has seen sharp growth and fierce competition in the past few years. Kinetic Motors has been valued at close to Rs150 crore (US$35.3 million) and the deal size is expected to be in the range of Rs70-80 crore (US$16.4-18.8 million). M&M is one of India’s leading manufacturers of general-purpose utility vehicles, light commercial vehicles, tractors and SUVs. Kinetic Motors has presence in motorcycles, scooters and utility vehicles in the two-wheeler segment. (May 15, 2008)