Mahindra to Acquire Pininfarina in Coming Weeks
Mahindra is all set to acquire the Italian design firm, Pininfarina in the coming weeks. Reports of Mahindra being in negotiation with the design firm, which is associated with premium car brands like Ferrari have been making rounds in the automotive industry circles.
The acquisition was also reported to be experiencing certain road bumps, as Pininfarina‘s Italian creditor banks raised certain issues with Mahindra’s proposal, which seem to have been resolved now. In contradiction, the Italian design firm stated that negotiations between Mahindra, creditor banks and Pincar were never severed. Pincar is Pininfarina’s holding company and owns a sizable number of Pininfarina shares.
Despite its prestige, Pininfarina has been suffering from loss for past few years and as of June 2015, the company’s net debt stood at 52.7 million euros, which is approximately Rs. 375 crores. The design brand has been responsible for some of the most striking premium cars, which include the likes of Alfa Romeos, Rolls Royces etc, for that matter the Mahindra TUV300 compact SUV also incorporates various design inputs from Pininfarina. The reason for this particular design juggernaut to be suffering loss is the fact that automakers prefer to have dedicated designers on their direct payroll, rather than have the design jobs outsourced, which Mahindra will eventually end-up doing after this acquisition goes through. The acquisition is also bound to bestow Mahindra with an impressive brand image globally.
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