Two ag equipment manufacturers – Japan’s Mitsubishi and India’s Mahindra – are forming a strategic partnership in the farm machinery field, with Mahindra acquiring a 33% stage in Mitsubishi’s ag machinery group. This deal “reaffirms Mahindra’s commitment to the North American market by formalizing its relationship with Mitsubishi, which has supplied tractors to MahindraUSA for the past 12 years,” according to an announcement.
The agreement is expected to close by October 1, 2015, with the new funding to be used to increase MAM’s capital base. The announcement was made today in a press release.
Mahindra is part of the $16.5 billion Mahindra Group’s Automotive and Farm Sector. Mahindra says that it is the number one selling tractor company in the world, “based on volumes.” It the only tractor manufacturer in the world to win the industry’s top two quality awards – the Deming Application Prize and the Japan Quality Medal, from the Union of Japanese Scientists and Engineers, accordring to the release. Mitsubishi Agricultural Machinery is a full range agri-machinery company producing and selling tractors, combines and other ag machinery.
“We are honored to see our relationship with Mitsubishi evolve from that of a key supplier into a strategic global alliance. The coming together of these two global corporations will allow us to better serve our customers,” said Mani Iyer, president of Mahindra’s U.S. operations.