Mahindra & Mahindra (M&M) is all set to acquire 55 per cent stake in radio taxi operator Meru Travel Solutions for a cash consideration of up to Rs 201.5 crore.
The home-grown auto giant has previously invested in players such as Zoom car and Glyd. The move to acquire stake in Meru Cabs will further increase the automotive major’s presence in new-age mobility space.
M&M has signed a share subscription and shareholder agreement for subscribing up to 55 per cent of equity share capital of Meru. After investment of the first tranche in Meru, M&M will have the right to appoint majority of directors on the board of Meru and will control its composition.
“Upon obtaining such right, Meru will become a subsidiary of the firm,” M&M said, adding subsidiaries of Meru — Meru Mobility Tech, V-Link Automotive Services and V-Link Fleet Solutions — will become subsidiaries of M&M.