Mahindra group has merged its subsidiary, Mahindra Truck and Buses Ltd with its M&M Ltd for achieving greater synergy business
Mahindra & Mahindra Ltd (M&M), one of the largest tractor manufacturers in the world, has informed in a regulatory filing that it has completed the merger of trucks and buses vertical of its subsidiary Mahindra Truck and Buses Ltd (MTBL) with its parent company M&M Ltd for greater synergy with the group business.
The Mahindra Group had last year approved the de-merger of its trucks and buses operations from MTBL into M&M Ltd to derive greater synergies. The trucks and buses vertical got demerged from MTBL Ltd and then it got merged with M&M Ltd. M&M said in a regulatory filing, the scheme of arrangement has become effective from 30 March 2014.
As per the approved scheme, all assets and liabilities of MTBL have been transferred to M&M. MTBL had registered an accumulated loss of Rs920 crore during FY2013, which will be included into M&M Ltd account. However its regulatory filing does not include any financial details about its merger.
Earlier on 07 March 2014, M&M has informed in its regulatory filing that, The Bombay High Court has approved a scheme of arrangement between MTBL, a wholly owned subsidiary of the company and its shareholders, creditors and M&M Ltd.
M&M in its December quarter posted 12% higher net profit at Rs934.06 crore from Rs836.19 crore in a same period a year ago, despite fall of 2% in its total sales at Rs10,555.68 crore from Rs10774.28 crore a year ago perid.
M&M Ltd shares closed 1.39% up at Rs980.65 on BSE. While S&P BSE Sensex ended the day flat at 22,386.
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