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| Kotak: So long |
Mumbai, June 1: The Kotak Mahindra group and Ford Credit International today announced a split that will see the two entities going it alone by controlling one firm each from their nine-year-old joint ventures.
Under the realignment, the Kotak group will acquire Ford Credit?s 40 per cent stake in Kotak Mahindra Primus (KMP), which will give the group complete ownership of KMP.
Ford Credit will increase its stake in Ford Credit Kotak Mahindra to 100 per cent from 55 per cent by acquiring the Kotak group?s 35 per cent share and Mahindra & Mahindra?s (M&M) 10 per cent holding in the company.
Kotak Mahindra Primus is engaged in the business of financing non-Ford passenger cars, while Ford Credit Kotak Mahindra is engaged in funding Ford passenger cars.
With this move, the joint venture between the Kotak group and Ford Credit International will now come to an end, a release issued by the company said today.
KMP will drop the word ?Primus? from its name while Ford Credit Kotak Mahindra will shed the words ?Kotak Mahindra? from its name.
The transactions are, however, subject to the regulatory approvals, including those from the Foreign Investment Promotion Board and the Reserve Bank of India.
?We had a very fruitful association with Ford Credit in the field of car financing. The Kotak Mahindra group, however, is committed to building its car finance franchise and maintaining its position as a significant player in the segment, consistent with its philosophy of building India?s leading financial institution,? Uday Kotak, vice-chairman and managing director of Kotak Mahindra Bank said.
?We would like to acknowledge the positive relationship and support provided over the past nine years by both the partners, Kotak Mahindra group and Mahindra & Mahindra,? said Mike Kozel, president of Ford Credit International (Asia Pacific region).
?The new structure is consistent with our global strategy to focus on supporting Ford Motor Company products and dealers, and Ford Credit International in India remains committed to that objective,? he added.
