The Competition Commission of India (CCI) has given its approval to the proposed takeover of Mahindra & Mahindra Ltd., which will acquire a 58.96% stake in SML Isuzu Ltd. It is a 555-crore acquisition that was initially announced in April 2025. CCI, in an official statement, verified the approval of the said combination and declared that the given combination complies with relevant competition regulations.
Mahindra & Mahindra will acquire a 43.96 percent stake in Sumitomo Corporation, the current promoter of SML Isuzu. The automaker will also gain 15 percent of the holdings owned by Isuzu Motors, the public holder. The acquisition will make Mahindra the controller of SML Isuzu, with an opening offer to acquire the remaining 26 percent, as stipulated by the SEBI takeover rules.
According to Mahindra, the investment is an expansion of its overall capital allocation strategy, which aims to grow into strong performers in the high-growth areas. It is a significant milestone in Mahindra's commercial vehicle aspirations and also marks the addition of a new product to its portfolio in the automobile and farm machinery markets.
The name SML Isuzu is a venture in producing heavy and medium commercial vehicles, established in 1983. The acquisition of Mahindra should also help it gain more ground in the commercial vehicles market, given the rise in demand for logistics and public transport systems.
The transaction falls within the regulatory jurisdiction of the CCI, under which it is expected to ensure that mergers and acquisitions are not made at the expense of commercial competition. This approval will enable Mahindra to proceed with the acquisition exercise, including an open offer, as required by regulations regarding acquisitions and open offers.
All economic activities exceeding the specified limits are to be scrutinized by the CCI to curb anti-competitive practices. The regulator in this case found no adverse effect on market conditions and approved the transaction without any conditions attached. The effort is an indication of strategic concentration in the Indian automobile business.
The acquisition is also in line with Mahindra's objective to generate long-term value through targeted investments. Through the acquisition of SML Isuzu's operations, Mahindra will have the opportunity to enhance its market share, volume, and product range in the commercial vehicle sector through the supply chain.