To enter new markets and supply networks, CIE Automotive SA (CIEA.MC) in Spain will buy a majority stake in the combined auto component unit of India's diversified Mahindra Group for about $116 million. Separately, the group flagship Mahindra & Mahindra (MAHM.NS), India's largest sports utility vehicle maker, has agreed to acquire a 13.5 per cent stake in CIE for 94.24 million euros.
Mahindra, a $16 billion group that has interests in businesses including automobile and information technology, will merge all its auto components businesses into its Mahindra Forgings (MAFR.NS) unit, as per the complex deal announced on June 15.