Mahindra acquires Turkish arable equipment maker

India’s biggest tractor maker Mahindra & Mahindra (M&M) has acquired a majority stake in Turkish farm equipment company Hisarlar. Under the US$19 million transaction, which is expected to close next month, Mahindra will acquire a 75.1% equity stake in the Turkish manufacturer. The deal provides the Indian company a distribution network in Europe’s largest tractor market, and will allow the firm to expand its European footprint. With two production facilities in western Turkey, Hisarlar enjoys a market leading 45% share of the country’s arable equipment market. The company also makes tractor cabs and industrial components. Commenting on the development, M&M managing director Pawan Goenka said Mahindra is the world’s number one tractor company by volume, with an on-ground presence in India, USA, China and Japan, besides many other export markets. “Our strategy going forward is to globalise aggressively and also expand our portfolio to include various new categories of farm machinery,” he said. “This acquisition is an important milestone in our globalisation journey.” This is Mahindra’s second European deal within a year in the farm equipment sector. In March, last year, it secured a 35% stake in Finland-based combine harvester maker Sampo Rosenlew.