The earthmoving equipment manufacturing industry is starting to get really busy in the year’s second quarter, with Mahindra and Finnish farm equipment maker Sampo Rosenlew now joining the fray to punch in one of the latest transactions within their field; where the former is reportedly all set in purchasing 35% of the equity stake of the Finland-based equipment firm. If your curious about the numbers, that’ll be around 18 million Euro, according to Mahindra & Mahindra Ltd (M&M) itself.
“Today, Mahindra is the world’s leading tractor company by volume, with an on ground presence in India, USA, China and Japan, besides many other export markets. We are now putting in place a strategy to build a full product line of farm equipment that goes beyond tractors and with this we will compete globally in both advanced and developing markets,” Dr. Pawan Goenka, executive director of M&M Ltd said in a statement, referencing Mahindra’s impressive global growth over the past few years.
On the other hand, the brand’s president and chief executive for farm equipment and two wheeler added, “Sampo Rosenlew will enable Mahindra to grow in the global combine harvester business. The two companies will work closely towards taking Sampo’s combine harvesters to new markets globally, including India.”
Sampo is not totally new to such strategic partnerships, having closely worked with a combine harvester company in Algeria that netted them 45 million Euros in 2014-2015. So together with its existing strategies in its key markets in Europe, Asia, and North Africa, the company is now looking forward to develop new range of combine harvesters for developing markets and for specialty crops and expand their reach across Eurasian Economic Union Countries.
Meanwhile, Mahindra who’s been quite active in its own right, over the last few years and have even recently entered the equipment rental industry, is poised to further expand their range of equipment and market scope together with Sampos, giving both companies’ and their loyal brand ambassadors a lot of positive things to look forward to once the transaction gets finalised around June later this year.