Saturday, February 9, 2013

BAE- Mahindra JV fizzles out


Neelam Mathews
Feb 9, 2013

Snippets of Statement on Joint Venture

Since the establishment in 2009 of the Mahindra & Mahindra (74%) and BAE Systems (26%) Joint Venture, Defence Land Systems India (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.
 
Following that review, it has been jointly agreed that Mahindra & 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.
 
This decision will enable both companies to consider each opportunity on a case by case basis, including continuing to explore opportunities for co-operating on specific defence projects.
 



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