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India : M&M\'s arm to acquire BAE\'s 26% stake in DLSI
Publish Date : 12-Feb-2013
Mahindra & Mahindra (M&M) Ltd has announced that its subsidiary Mahindra Defence Systems Ltd is expected to acquire the 26% stake held by BAE Systems Plc in their partnership firm Defence Land Systems India Pvt Ltd (DLSI).
The group said changes in the business environment and customer procurement frameworks have prompted stakeholders to hold a strategic review of DLSI.
It added that the decision to close the venture would allow both the firms to consider each opportunity on a case by case basis, including continuing to explore the potential of co-operating on specific defence projects.
Khutub Hai, chairman & managing director of Mahindra Defence Systems, said : \'In keeping with the Indian defence acquisition scenario and the current market conditions, the managements of M&M and BAE Systems have decided that Mahindra\'s 100 per cent subsidiary Mahindra Defence Systems will acquire BAE\'s 26 per cent shareholding in the Defence Land Systems India joint venture\'.
Mahindra & Mahindra, added : \'Since the establishment in 2009 of the M&M (74 per cent) and BAE Systems (26 per cent) joint venture, DLSI, there has been significant evolution in the Indian land systems market. Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business.\'
