M&M to Divest 100% Stake in Sampo Rosenlew to Turkey's TERA Holding

Mahindra & Mahindra Ltd (M&M) announced on Monday, September 29, 2025, that it has signed a Share Purchase Agreement (SPA) with Tera Yatirim Teknoloji Holding Anonim Sirketi (TERA), a Turkish investment and technology firm, to divest its entire shareholding in Sampo Rosenlew Oy (SAMPO), its wholly owned Finnish subsidiary.

The deal, formalised on the same day, is slated for completion by October 6, 2025. Upon closing, SAMPO will no longer be a part of M&M’s consolidated entity. The transaction is valued at €5 million (approximately ₹52 crore, based on current exchange rates).

Rationale for Divestment

M&M stated that this strategic divestment is part of its broader portfolio optimisation strategy, aimed at reallocating resources towards core businesses and future growth opportunities that align with the company’s long-term vision.

For the financial year ended March 2025 (FY25), SAMPO contributed ₹370.98 crore in revenue, accounting for 0.23% of M&M’s consolidated turnover. Its net worth stood at ₹182.02 crore, representing 0.24% of the company’s consolidated net worth (excluding non-controlling interest). However, after consolidation adjustments, SAMPO’s net worth was reduced to nil as of Q2 FY26.

“SAMPO has significantly contributed to enhancing our capabilities in the farm machinery segment, and several of its innovations have been successfully integrated into M&M’s operations. Under TERA’s ownership, we believe SAMPO will be better positioned to innovate and scale further,” the company said in a statement.

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About SAMPO

Founded in 1853 and headquartered in Pori, Finland, Sampo Rosenlew Oy is a manufacturer of combine harvesters and forestry equipment, employing approximately 200 professionals. In 2024, the company reported net sales of around €41 million.

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