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Mahindra & Mahindra Ltd. (M&M) has signed a definitive Share Purchase Agreement to sell its entire stake in Sampo Rosenlew Oy (SAMPO), its Finnish subsidiary, to Turkey’s Tera Yatirim Teknoloji Holding Anonim Sirketi for a consideration of €5 million (approx. ₹52 crore). The deal is expected to close by October 6, 2025, marking M&M’s complete exit from the Finnish combine harvester and forestry equipment maker.

About the Transaction

SAMPO, headquartered in Pori, Finland, has been a wholly owned subsidiary of M&M since its acquisition. With around 200 employees, the company is known for its high-quality combine harvesters and forestry machinery.

In 2024, SAMPO reported net sales of €41 million. For the year ended March 31, 2025, its revenue stood at ₹370.98 crore, contributing only 0.23% to M&M’s consolidated turnover. As of March 2025, SAMPO’s net worth was ₹182.02 crore, about 0.24% of M&M’s consolidated net worth. After consolidation adjustments in Q2 FY26, however, SAMPO’s net worth was reported as nil.

Strategic Rationale

M&M said the divestiture aligns with its strategy to optimise its portfolio and channel resources toward areas with stronger long-term potential. The automaker emphasized that transitioning SAMPO’s ownership will enable the Finnish company to pursue fresh growth and innovation under TERA’s stewardship, while continuing to build on its strong legacy in the Finnish market.

The company also acknowledged SAMPO’s contribution since acquisition, noting that several of its technologies have helped strengthen Mahindra’s farm machinery capabilities globally.

Next Steps

The transaction, subject to customary closing conditions, is slated for completion by October 6, 2025, following which SAMPO will cease to be a wholly owned subsidiary of M&M.

Summary

Mahindra & Mahindra has agreed to sell its Finnish subsidiary Sampo Rosenlew Oy to Turkey’s TERA Yatirim for €5 million (₹52 crore), with the deal expected to close by October 6, 2025. The divestiture, part of M&M’s portfolio optimisation strategy, will mark the automaker’s exit from SAMPO, a company known for its combine harvesters and forestry machines. While SAMPO contributed only a small share to M&M’s consolidated revenue, its technology has played a key role in strengthening Mahindra’s farm machinery segment. The move is aimed at unlocking fresh growth opportunities for SAMPO under new ownership while allowing M&M to sharpen its focus on higher-priority businesses.

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