Mahindra & Mahindra to sell its entire stake in its subsidiary, deal worth Rs. 100 crore

Automobile giant Mahindra & Mahindra Limited (M&M) recently signed a Share Purchase Agreement (SPA) with Tera Yatirim Teknoloji Holding Anonim Sirketi (TERA) to sell its entire stake in its wholly-owned subsidiary, Sampo Rosenlew Oy (SAMPO). The agreement was signed on September 29, 2025, and the transaction is expected to be completed by October 6, 2025. Upon completion of the transaction, SAMPO will cease to be a wholly-owned subsidiary of M&M. The total value of the deal is estimated at 5 million euros (approximately Rs. 52 crores).

SAMPO’s Financial Position

SAMPO contributed revenue of Rs. 370.98 crores in the 2025 financial year, representing 0.23% of M&M’s turnover. Its total net worth during this period was ₹182.02 crore, representing 0.24% of the company’s total net worth, excluding non-controlling interests. After consolidation adjustments, SAMPO’s total net worth was zero as of the second quarter of FY2026.

M&M stated that the divestiture is in line with its strategic vision. It will optimize its portfolio and deploy resources toward opportunities that best position the company for long-term success.