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Mahindra deal to buy Pininfarina denied by creditors

Mahindra deal to buy Pininfarina denied by creditors

Snapshot: Mahindra & Mahindra’s plan to acquire Pininfarina has reached an impasse.

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Back in March this year, reports started to emerge about the possibility of seeing troubled Italian design house and coachbuilder Pininfarina in Mahindra’s portfolio as the Indian company expressed its interest in purchasing the legendary company. However, it seems that won’t happen in the near future as three or four banks have denied the transaction because the deal mentioned half of Pininfarina’s debt would be simply erased.

Needless to say, the creditors were not too happy once they heard that 50% of the total €87 million debt was planned to be eliminated, so the deal between the two parties has been halted, according to Italian newspaper Il Messaggero. It’s not known at this point whether the terms of the deal will be modified to please the creditors who obviously don’t want to ignore that massive debt.

Pininfarina apparently is now seeking a debt restructuring deal to get back into shape, so Mahindra’s plans to add the name to their portfolio are being put to a hold, at least for the time being. It should be mentioned that our local automaker purchased SsangYong in 2011 while in 2014 they acquired Peugeot Motorcycles. There are some talks Mahindra is negotiating with National Electric Vehicle Sweden (NEVS) – the company that owns SAAB – to buy the troubled Swedish marque, but an official announcement regarding this matter has not been made yet.

Getting back to Pininfarina, they have been on a rough road in recent times as in 10 of the last 11 years they posted significant losses. However, their shares went up earlier this year by 10% and this has increased the company’s overall value to €136 million.

Pininfarina’s latest project is the Sergio limited-edition based on the Ferrari 458 Spider. It was created to celebrate the design house’s 85th birthday and only six units have been made, all featuring a plethora of customizations both inside and out.

Source: Il Messaggero

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