Contrary to market expectation the joint venture between Mahindra & Mahindra and Renault in India has come to an end. In my earlier post, I had mentioned that Renault may give its Indian JV a second chance. However, the hopes of revival of the joint venture came to an end when a joint statement was released by the company.
The financial details of the deal are not yet known. However, Renault that was 49 per cent partner in the JV is expected to pay its part of debt of about $90 million. The 49 per cent stake of Renault in the JV is taken by Mahindra & Mahindra for an undisclosed sum. Renault will continue to support Mahindra & Mahindra in development of Logan. Also, Mahindra & Mahindra will launch the rebranded model of Logan in about a year and a half. Renault has already entered into a joint venture with Bajaj to make small cars in India.
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