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Report: India's Mahindra Gears Up to Buy Pininfarina

Motor Trend logo Motor Trend 9/8/2015 Kelly Pleskot

India's Mahindra & Mahindra is nearing a deal to purchase Italian car designer Pininfarina, according to a report from Bloomberg.

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The two parties are currently working through the final price of the sale as well as concerns related to Pininfarina's debt. A final deal could arrive in the next few days, says the report, citing unnamed sources familiar with the matter.

Report: India's Mahindra Gears Up to Buy Pininfarina

Pininfarina has remained unprofitable for 10 of the last 11 years. Just three years ago, the Italian design house closed the division that builds cars for other manufacturers. Earlier this year, talks of a new investor renewed hopes for the company's future, and Chairman Paolo Pininfarina said that the move would "bolster growth in coming years."

Pininfarina Logo© Provided by MotorTrend Pininfarina Logo

Enter Mahindra, India's largest maker of SUVs. At first glance, it seems a bit of an odd match with Pininfarina, a company known for penning such beauties as the Fiat 124 Spider, Alfa Romeo Spider, Ferrari 250 GT, and many other sports cars. But the Italian designer has also worked closely with Mahindra on its SUVs, including the upcoming TUV300 cute ute.

For Mahindra to finally buy Pininfarina, several pieces would have to fall into place. Pincar, the current controlling shareholder, sold 76 percent of the company to banks to help with debt restructuring in 2012, and those creditors would have to approve the takeover. So far, Mahindra and Pininfarina have yet to comment on the report, but according to Bloomberg, Pincar said the talks are ongoing.

Source: Bloomberg

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