Mumbai, Aug. 21: Mahindra & Mahindra, the utility vehicle and tractor maker, has decided to bid for Valtra — the Finnish maker of high horse-power tractors.
“The board of directors of Mahindra & Mahindra (M&M) today decided to submit an offer for acquiring the tractor business of Valtra in Finland and Brazil,” a notice to the stock exchanges said.
The acquisition of Valtra's tractor businesses would help M&M broaden its product portfolio since the Finnish company makes high horse power tractors while M&M is focused on mid-end tractors.
Valtra, analysts say, will help M&M get a toehold in Europe and the US. The deal will help M&M bring in advanced technology in tractors manufacturing at a time when John Deere and Ford New Holland are making their presence felt in India.
Valtra’s net sales in 2002 was €762 million (Rs 3,886 crore), and the company had 2,508 employees, including 1,541 in Finland and 710 in Brazil.