It is reported that India’s largest maker of SUVs, Mahindra & Mahindra, is edging closer to purchasing Italian design house Pininfarina SpA.
Not too long ago, it emerged that a planned deal between the two companies fell through but that failed to dissuade Mahinda from purchasing the renowned car design company. Apparently, new negotiations are underway between the two that could be finalised in the coming days.
As it stands, it is suggested that Mahindra and Pininfarina are still negotiating on a final purchase price with talks still underway relating to the design house’s debt troubles. News of the deal saw Pininfarina’s shares being halted after rising by 11 per cent.
Pininfarina has been fighting with debt for the last decade and has been unprofitable for 10 of the last 11 years. That comes despite the fact that Pininfarina continues to work with a number of automakers in creating special projects and designing cars.
It is hoped that an acquisition of Pininfarina will help provide financial stability for the company.