Mahindra & Mahindra has signed a binding agreement to sell its entire (51 percent) stake in Mahindra Yueda (Yancheng) Tractor Company (MYYTCL)through Mahindra Overseas Investment Company (Mauritius), a wholly owned subsidiary of the company, to its joint venture partner, the Yueda Group of China, for Rmb 82 million(Rs 83 crore).
As on December 2016, the company’s turnover stood at Rmb 339.89 million (Rs 346 crore). With M&M selling its entire stake, MYYTCL will become a 100 percent subsidiary of the Yueda Group. The agreement is expected to be completed by end of August 2017, with Jiangsu Yueda Investment, Jiangsu Yueda Group and Yan Bingde picking up 2 percent, 39 percent and 10 percent stake respectively.
Mahindra & Mahindra had entered into the joint venture in 2009, which gave it access to China’s No. 3 tractor brand in terms of volumes.
In the domestic market, M&M sold M&M had sold 17,682 tractors in July (+7 percent YoY), while April-July 2017 sales (domestic + exports) were 103,365, an increase of 12 percent.