New Delhi, Feb. 9 (PTI): Mahindra and Mahindra today said it would acquire a 26 per cent stake in its defence joint venture with BAE Systems, ending their three-year old partnership.
In a joint statement, the two companies said they had decided to end their three-year old partnership in the Indian defence sector with MandM set to acquire the 26 per cent stake of its partner in the joint venture company Defence Land Systems India (DLSI).
In DLSI, Mahindra Defence Systems ' part of the Mahindra and Mahindra group ' has a 74 per cent stake, while the global defence major holds the remaining 26 per cent.
The joint venture company had plans of supplying artillery howitzers and anti-mine vehicles to the Indian armed forces.
"Since the establishment in 2009 of the joint venture, DLSI, there has been significant evolution in the Indian land systems market.
"Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business," BAE Systems said in the statement.
"Following that review, it has been jointly agreed that Mahindra and Mahindra will acquire BAE Systems' 26 per cent shareholding in the entity.
"This decision is a reflection of the shareholders' belief that they can best meet emerging customer requirements and address the opportunities in this dynamic market with a flexible, tailored approach that was not easily facilitated by the structure of the existing joint venture entity," it said.