Mahindra Sells Finnish Subsidiary Sampo Rosenlew to Turkey's TERA

Mahindra and Mahindra Limited signed a Share Purchase Agreement on 28th September to sell its entire stake in Sampo Rosenlew Oy to Turkish investment firm Tera Yatirim Teknoloji Holding Anonim Sirketi (TERA). The divestiture ends M&M's ownership of the Finnish combine harvester and forestry equipment manufacturer, which it acquired as a wholly owned subsidiary.

The transaction aligns with M&M's strategic focus on opportunities for long-term growth. The Mumbai-based company, which holds the position as the world's largest tractor manufacturer by volume, is realigning its portfolio to concentrate on core business areas.

Sampo Rosenlew, founded in 1853, specializes in manufacturing combine harvesters and forestry machines from its operations in Pori, Finland. The company employs approximately 200 professionals and reported net sales of 41 million euros in 2024.

M&M stated that Sampo has contributed meaningfully to the group since becoming part of Mahindra, with technologies developed by the Finnish subsidiary instrumental in building M&M's farm machinery capabilities. The company believes the ownership transition will enable Sampo to pursue new innovation and growth pathways while leveraging its heritage and understanding of the Finnish market.

The divestiture represents M&M's portfolio optimization strategy as the Indian conglomerate focuses resources on sectors where it maintains leadership positions. M&M operates across farm equipment, utility vehicles, information technology, financial services, renewable energy, agriculture, logistics, hospitality, and real estate with 260,000 employees across over 100 countries.

Following completion of the transaction, Sampo Rosenlew will cease to be a subsidiary of Mahindra and Mahindra Limited. The sale reflects the broader trend of multinational companies streamlining operations to focus on core competencies and high-growth markets.

Mahindra & Mahindra acquired a significant stake in Finland-based Sampo Rosenlew, a specialist in mid-sized harvesters, in 2016 to enter the combine harvester segment. Over time, Mahindra steadily increased its holding, and by 2022, it had taken full ownership, making Sampo Rosenlew a wholly owned subsidiary. The move was part of Mahindra’s larger strategy to evolve from being primarily a tractor manufacturer into a comprehensive farm machinery player with a global footprint.

The strategic logic was clear. Mahindra already commanded strong leadership in tractors, especially in India and several international markets. What it lacked was advanced technology in harvesters and presence in developed agricultural regions. Sampo Rosenlew brought exactly that: a reputation for reliable, high-quality harvesters suited for both European conditions and specialty crops. The acquisition promised to combine Mahindra’s distribution reach, financial muscle, and emerging-market access with Sampo’s engineering expertise and credibility in Europe. The vision was to scale Sampo’s technology into new geographies such as Asia, Africa, and Latin America, while also strengthening Mahindra’s positioning in Europe.

However, execution has proven challenging. Demand for harvesters in key markets has been volatile, development costs have remained high, and integration benefits have been slower to materialize than expected. In recent years, Mahindra has emphasized sharper capital allocation, prioritizing core businesses like SUVs and tractors. Against that backdrop, Sampo Rosenlew has delivered lower-than-expected returns, leading Mahindra to consider exiting the investment.

The Finnish agricultural equipment market serves specialized needs for combine harvesters suited to local farming conditions and crop types. TERA's acquisition provides the Turkish firm with established manufacturing capabilities and market presence in Northern European agricultural equipment markets.