Mahindra and Mahindra, on Saturday, said it would acquire 26 per cent stake in its defence joint venture with BAE Systems, ending their three-year old partnership.
In a joint statement, they said that they had decided to end their three-year old partnership in the Indian defence sector with M&M set to acquire 26 per cent stakes of its partner in the joint venture company Defence Land Systems India (DLSI).
In DLSI, Mahindra Defence Systems — a part of the Mahindra and Mahindra group — has 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 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.