By Muhammed Ali Gurtas
ANKARA (AA) - The bulk of agricultural machinery maker Hisarlar Makina is to be sold to India’s Mahindra & Mahindra (M&M) in a $19 million deal, the Indian company said Friday.
M&M is to buy a 75.1 share in Hisarlar Makina, a 40-year-old firm based in Eskisehir, western Turkey.
“We at Hisarlar welcome the world’s number one tractor company to Turkey,” Hisarlar Chairman Zafer Turker said in a statement. “This acquisition is an important milestone in our journey and we are pleased to have Mahindra as our partners.”
The deal, which is due to be concluded by April, will see the European Bank for Reconstruction and Development (EBRD) increase its share in Hisarlar to 18.7 percent.
Hisarlar has two factories in western Turkey and employs around 820 people. It has a 45 percent share of the Turkish agricultural machinery market and 35 percent of its revenue comes from exports.
M&M Managing Director Pawan Goenka said the purchase was part of a strategy to “globalize aggressively”.
The Mahindra Group has more than 200,000 employees in 100 countries in sectors including vehicles, information technology, financial services, aerospace, defense, energy, real estate and steel.
Jean-Patrick Marquet, EBRD managing director for Turkey, said: “The EBRD is committed to attracting foreign direct investment to Turkey, particularly at this challenging juncture. As a shareholder in Hisarlar we are pleased to partner with M&M Ltd.”