Mahindra & Mahindra Limited, Ford Motor Company to establish joint venture

Mahindra & Mahindra Limited (M&M) and the Ford Motor Company (FMC) will establish a joint venture, following the Tribunal’s unconditional approval of the proposed transaction. Upon implementation of the merger, M&M and FMC will have a joint venture in the target business, Ardour Automotive Private Limited (Ardour).

M&M is a public company registered in India. Mahindra Group has interests across various sectors including automotive. Locally, Mahindra SA sells passenger vehicles, tractors, construction equipment and generator sets. It recently set up a vehicle assembly facility in KZN.

FMC, a public company registered in the United States, is an automobile company. In South Africa it is involved in the manufacture, wholesale and retail of vehicles. Ford SA has dealerships across eSwatini, Namibia, South Africa and Botswana. It exports vehicles to Europe, the Middle East and Africa and imports the Figo and EcoSport brands from India.

Ardour, a newly formed entity incorporated in India for the purpose of the proposed transaction, will house the business of Ford India Private Limited (FIPL). Ardour will operate the target business of FIPL which involves exporting vehicles, manufactured in India, across the world.

The Commission, which assesses large mergers before referring them to the Tribunal for a decision, found that the proposed transaction is unlikely to lessen competition in the relevant market. No public interest concerns were raised. The Commission recommended that the merger be approved without conditions.