Monday, July 16, 2007

India's Mahindra & Mahindra may buy some of Romania's Tractorul assets

MUMBAI (Thomson Financial) - Indian commercial vehicle company Mahindra & Mahindra Ltd (M&M) is looking to buy some of the assets of Romanian tractor company Tractorul, business daily The Economic Times reported.

The paper cited Anjou Choudhri, president of M&M's farm division as saying: 'The assets, including the factory, foundry, and land, were then auctioned off and bought by a local entity. They are now selling pieces of it and we have been approached as to whether we would be interested and we will look at it.'M&M had earlier bid for Tractorul when the Romanian government put it on block due to Tractorul's debt liability of 180 mln eur, but the deal came unstuck when the European Union Competition Council objected to the debt write-off given by the local government as part of the deal, the paper said.

M&M was interested in Tractorul because it would have earned it a foothold in the European Union when Romania joined it. M&M has also struck alliances with Uzel in Turkey and Iran Tractor Manufacturing Company in Iran, the paper said.

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