Mahindra Ready to Buy Pininfarina

It is reported that India’s largest maker of SUVs, Mahindra & Mahindra, is edging closer to purchasing Italian design house Pininfarina SpA. Mahindra and Pininfarina have yet to agree on the final purchase price as well as issues related to the designer’s debt, the people said. Pininfarina’s controlling shareholder Pincar, which has a 76 percent stake in the group, said in a statement talks with the Indian group on the sale of its holding were underway and any developments would be communicated to the market in due course. When contacted an M&M spokesperson declined to comment stating that the company does not comment on “speculative reports”.

Bloomberg is citing Italian newspaper Illinois Sole 24 Ore that the talks are in their final stages, after stalling months ago, with banks in Italy now discussing what to do with the carrozzeria’s $97 million in debt as part of the deal.

Pininfarina has been reeling under the debt for the past several years, and reportedly even shut a floundering division that built cars for other manufacturers three years ago. Despite the kibosh by the banks, the family behind the famous designers said earlier this year that a new investor would provide “financial solidity and bolster growth in coming years”.

Established in 1930, Pininfarina has also been involved in making cars like Rolls-Royce Camargue, Cadillac Allante, Maserati Quattroporte as well as classics such as the Ferrari 250 GT and Alfa Romeo Giulietta Spider. Those creditors need to approve any sale.