Mahindra and Mahindra Ltd has agreed to invest C$6.63 million ($5.17 million) for a 10% stake in Canadian technology firm Resson Aerospace Corp in an all-cash deal.
M&M will acquire up to 800,402 Class C preferred shares of Resson Aerospace, which translates into 10% of the company’s share capital on a fully diluted basis, it said in a stock exchange filing.
The transaction is expected to be complete by 10 May, 2018. No government or regulatory approvals are required for the deal, the company said.
The deal is expected to help the Indian conglomerate develop and strengthen its technology solutions for its farm division. M&M is the world’s largest selling tractor brand by volume.
Incorporated in May 2013, Resson focuses on providing technology solutions for agriculture. It has developed a system that captures and interprets images to give farmers information on the state of the field and crop health. It primarily operates in Canada and the US.
The $19-billion Mahindra Group has interests in automobiles, two-wheelers, farm equipment, defence, energy, financial services, real estate and retail. In the past three years, it has acquired at least four businesses across the automobiles and farm equipment sectors.
In October 2014, M&M had acquired a 51% stake in Peugeot Motorcycles for €28 million. In December 2015, M&M and Tech Mahindra Ltd jointly acquired a 76.06% stake in Italian car designer Pininfarina SpA for about €25.3 million (euros).
In January 2017, it had bought a 75% stake in Turkey-based farm equipment manufacturer Hisarlar Makina Sanayi ve Ticaret Anonim Åžirketi for $19 million and followed it up with the acquisition of Turkish tractor maker Erkunt Traktor Sanayii AS for $76 million in September.