Houlihan Lokey Advises Sumitomo Corporation
Houlihan Lokey is pleased to announce that Sumitomo Corporation has signed definitive agreements to sell its stake in SML Isuzu Ltd., a leading manufacturer and distributor of trucks and buses in India, to Mahindra & Mahindra (M&M), a leading conglomerate in India. The transaction was signed on 26 April 2025 and is likely to close next quarter.
Incorporated in 1983, SML Isuzu is a listed company in India primarily in the business of manufacturing and selling light commercial vehicles (LCVs) and medium commercial vehicles (MCVs). The product portfolio comprises buses, trucks, and specific application vehicles. It has a manufacturing facility located in Punjab in North India with a pan-India distribution network. SML Isuzu has extremely well-recognised brands, a strong vintage, pan-India presence, and a market-leading position in the LCV buses segment, with around 16% market share. The company has profitable operations, state-of-the-art manufacturing, and strong engineering capabilities.
Sumitomo Corporation is an integrated trading and business investment company with a strong global network comprising 125 offices in 64 countries and regions. Sumitomo Corporation consists of approximately 900 companies and 80,000 employees on a consolidated basis with a market capitalisation of ~$30 billion. The group’s business activities are spread across the following nine groups: Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions, and Energy Transformation Business.
Founded in 1945, the Mahindra Group is one of India’s largest and most admired multinational federations of companies with 260,000 employees in more than 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology, and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate. The current market capitalisation is ~$40 billion.
As part of the transaction, M&M will acquire the entire stake of ~44% held by Sumitomo Corporation, and separately also acquire a 15% stake held by Isuzu Motors Ltd. M&M will also launch a mandatory open offer for acquiring an additional 26% stake from eligible public shareholders of SML Isuzu in accordance with the Takeover Regulations in India, entailing a total outlay of ~$130 million. The transaction, including the open offer, is subject to the approval of the Competition Commission of India and is expected to be completed in 2025.
Houlihan Lokey served as the exclusive sellside advisor to Sumitomo Corporation and was mandated based on its strong global track record in the automotive sector, and its on-ground presence in India. This transaction marks the firm’s 24th successful transaction in the India-Japan corridor, reinforcing its leadership position.
RELATED: Automotive, Truck, and Automotive Technologies, Mergers & Acquisitions