Mahindra & Mahindra, the famous Indian automobile company best known for producing high end SUVs; and Pininfarina – the Italian car design company – are engaged in backdoor talks which might result in the acquisition of Pininfarina by Mahindra – according to reports by Bloomberg.
Both the companies denied to comment on the rumours, but after the news broke out, the shares of Pininfarina rose by 26 percent, which is the biggest yield the company has seen in the past few years.
Mahindra & Mahindra already has a reputation for saving companies going bankrupt. In 2011, they bought South Korean manufacturer Ssangyong and also owns majority of shares in Peugeot Motorcycles.
Pininfarina on the other hand has been struggling due to heavy debt. Apart from autos, the company also designs furniture, electronics, buildings and interiors. They are currently in debt of more than 45 million Euros.
If the deal turns out to be true, it will be a blessing for Pininfarina, reshaping its financial position and helping it get back on track.