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Mahindra Abandons Chinese Tractor Joint Venture

September 25, 2017

In order to independently pursue growth in China, the world’s largest tractor manufacturer, Mahindra & Mahindra, has announced it is selling its entire stake in a Chinese tractor joint venture company. The company in the stock exchange filing said that Mahindra Overseas Investment Co. (Mauritius) Limited (MOICML), a wholly owned subsidiary of the company, has agreed to sell its entire shareholding of 51% in Mahindra Yueda Yancheng Tractor Co. Ltd (MYYTCL) worth $12.3 million to its partners, Jiangsu Yueda Investment Co. Ltd, Jiangsu Yueda Group Co. Ltd and Yan Bingde. Jiangsu Yueda Group will buy a 39% stake, Yan Bingde will buy a 10% stake and Jiangsu Yueda Investment will buy 2% in the company, according to the company filing.

Mahindra said it would evaluate the market opportunity to introduce rice transplanters, harvesters and other farm equipment in the country. However, the deal is subject to regulatory approval and is likely to be completed in the coming months, the company said Mahindra set up the joint venture firm in 2008. In its 2016-17 financial year, the company posted revenues of $52 million.

Davekanicki

Dave Kanicki

Dave Kanicki is the former Editor/Publisher (retired in 2020) Editor & Publisher of Ag Equipment Intelligence (AEI) and its related research, reports and broadcast channels. He joined Lessiter Publications in 2005 after decades of experience as an Editor & Publisher of metals manufacturing titles. His Farm Equipment and AEI work has been nationally recognized by both trade business and business press associations. He is a graduate of Central Michigan University.