Mahindra & Mahindra today said its subsidiary has inked a pact to acquire up to 60 per cent stake in Netherlands-based OFD Holding BV for 5 million euros.
Mahindra Agri Solutions Ltd (MASL), a wholly-owned subsidiary of the company, has inked a definitive agreement to acquire up to 60 per cent of the equity share capital of OFD Holding BV, a fruit distribution company, M&M said in a regulatory filing.
Acquisition of up to 60 per cent of the foreign entity would be for a consideration not exceeding 5 million euro (about Rs 36 crore) subject to customary adjustments on closing, it added.
"It is a matter of pride for us that we have entered into a partnership with OFD Holding BV, which takes us closer to achieving our vision of being a significant player in grapes.
We have been working with farmers in India for a long time and this association will bring a lot of synergy by giving access to new markets to our farmers," MASL MD & CEO Ashok Sharma said.
MASL has a vision of being among top global players in grapes with transnational sourcing and distribution network.
and the current deal is a step towards realising this vision by expanding the distribution base to both Europe and China.
OFD Holding BV Managing Director Corne van de Klundert said the development would strengthen the company's position as an integrated supply chain company.
Mahindra stock closed at Rs 1,181.45 apiece, up 3.29 per cent, on BSE.
Like this report? Sign up for our daily newsletter to get our top reports.