Mahindra & Mahindra Ltd has agreed to sell its 51% stake in a Chinese tractor joint venture to its partners for 82 million yuan ($12.3 million or Rs 79 crore).
India’s biggest tractor maker said in a stock-exchange filing that unit Mahindra Overseas Investment Company (Mauritius) Ltd will sell the stake in Mahindra Yueda Yancheng Tractor Company Ltd to Jiangsu Yueda Investment Co. Ltd, Jiangsu Yueda Group Co. Ltd and Yan Bingde.
Jiangsu Yueda Investment, Jiangsu Yueda Group and Yan Bingde will buy 2%, 39% and 10%, respectively, in Mahindra Yueda.
The deal is subject to regulatory approval and is likely to be completed by the end of August.
Mahindra had formed the joint venture in 2008.
Mahindra Yueda posted revenue of 339.89 million yuan in 2016.
The Indian automaker also said that it can now operate independently in China and that it will evaluate the market opportunity to introduce rice transplanters, harvesters and other farm equipment in the country.