Indian conglomerate Mahindra & Mahindra has completed the purchase of Navistar International's (NYSE: NAV ) 49% stake in two Indian joint ventures. In December, the companies said the deal involved Mahindra paying approximately $33 million for Navistar Group's stake in both ventures.
The two companies jointly announced this week that following regulatory approval, Mahindra now fully controls and operates Mahindra Navistar Automotives Ltd. (MNAL) and Mahindra Navistar Engines Pvt. Ltd. (MNEPL). Navistar will continue sourcing components from India while Mahindra will continue providing engineering services to Navistar.
Navistar announced plans to exit the joint ventures in December as part of a larger turnaround strategy that focuses on its core North American operations. At the time, Navistar President and Chief Operating officer Troy Clarke said considering its priorities for the coming year and the fact the Indian market hadn't grown as fast as expected, "our capital and focus needs to be allocated to other business opportunities in the near term."
Navistar and Mahindra entered into the MNAL joint venture in late 2005 to manufacture trucks and buses in India, source components, and provide engineering services for the design and development of Navistar vehicles. The MNEPL joint venture was formed in 2007 and began producing engines in 2010.