Mahindras to buy out BAE in defence JV

[Defcon 1]

Mahindra and Mahindra, on Saturday, said it would acquire 26 per cent stake in its defence joint venture with BAE Systems, ending their three-year old partnership.

In a joint statement, they said that they had decided to end their three-year old partnership in the Indian defence sector with M&M set to acquire 26 per cent stakes of its partner in the joint venture company Defence Land Systems India (DLSI).

In DLSI, Mahindra Defence Systems — a part of the Mahindra and Mahindra group — has 74 per cent stake while the global defence major holds the remaining 26 per cent.

The joint venture company had plans of supplying artillery howitzers and anti-mine vehicles to the Indian armed forces.

"Since the establishment in 2009 of the joint venture, DLSI, there has been significant evolution in the Indian land systems market.

"Developments in the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business," BAE Systems said in the statement.

The Hindu : Business / Companies : Mahindras to buy out BAE in defence JV

 

[bengalraider]

I wonder how much of an effect this will have on the technology transfers mahindra was getting from BAe.

 

[Yusuf]

MnM without BAE rigt now doesn't seem like a viable defence company technology wise. Wonder what is the reason for this break up. May be they didn't see any hope in winning any arty deal with both DRDO and TATA coming up with howitzers.

 

[JBH22]

MnM without BAE rigt now doesn't seem like a viable defence company technology wise. Wonder what is the reason for this break up. May be they didn't see any hope in winning any arty deal with both DRDO and TATA coming up with howitzers.

could be due to MoD reluctance to get foreign firms in defence production which is rather ridiculous

 

[Defcon 1]

MnM without BAE rigt now doesn't seem like a viable defence company technology wise. Wonder what is the reason for this break up. May be they didn't see any hope in winning any arty deal with both DRDO and TATA coming up with howitzers.

M&M has a history of screwing up JVs. Started with Ford, then Renault, BT, Navistar, and now BAE. This company is just not a good JV partner.

 

[SPIEZ]

M&M has a history of screwing up JVs. Started with Ford, then Renault, BT, Navistar, and now BAE. This company is just not a good JV partner.

They exit after their purpose is served, their automobiles are doing good. For eg: Mahindra Bolero, Scorpio etc. They know where their markets lie and target there alone.

 

[farhan_9909]

Mahindra MPV my fav

(which infact is a BAE product )

 

[SPIEZ]

Mahindra MPV my fav

(which infact is a BAE product )

Mahindra is a one of the best Indian multi National Company.

Maindra had a joint venture with BAE in order to procure MPVs for Indian requirements. Unlike certain countries which make carbon copies. shamelessly.

They have also acquired other MNC's. For example Mahindra acquired GrippsAero which waas an Australian Areospace company. Come to think of it, an Australian company is now under an Indian one.

Sad there aren't any proper industries in Pakistan.

 

[pmaitra]

Mahindra MPV my fav

(which infact is a BAE product )

Mahindra MPV is an Ural Truck modified as per BAE ToT.

 

[shuvo@y2k10]

may be they realize they weren't gaining anything and bae wanted to push it's product through this joint venture( no joint developement) since indian army wants to buy indian products.