Mahindra agrees to buy car designer Pininfarina
Move marks strategy to add flair following acquisition of Korean carmaker Ssangyong
Mahindra & Mahindra Ltd has agreed to buy Italian car designer Pininfarina SpA, wrapping up months of talks on a deal aimed at elevating the Indian vehicle maker’s styling, people familiar with the matter said.
The agreement was set to be finalised and announced yesterday, said the people, who asked not to be identified before a deal is made public. Representatives of Mahindra and Pininfarina weren’t immediately available for comment. Trading of Pininfarina’s shares in Milan were suspended pending an announcement.
The takeover of Turin-based Pininfarina, the creator of the Ferrari 458 Spider roadster, marks a move by Mahindra to add flair following its acquisitions of South Korean carmaker Ssangyong and the motorcycle unit of French auto manufacturer PSA Peugeot Citroen. The designer already cooperates with Mumbai-based Mahindra on SUV development and worked with it on the Halo electric sports-car concept unveiled last year.
Pininfarina has been unprofitable for 10 of the past 11 years while struggling with debt. Mahindra may invest as much as €150 million (Dh604 million, $164 million), including debt and fresh capital, a person familiar with the matter said last week. Pininfarina’s market value is €127 million.
The Italian company shut a floundering division that built cars for other manufacturers three years ago. Chairman Paolo Pininfarina, a grandson of the company’s founder, said on April 22 that a new investor will provide “financial solidity and bolster growth in coming years.”