BAE Systems Sells Stake In Mahindra Joint Venture

BAE Systems and Mahindra & Mahindra announced today that the former will be selling its 26 percent stake in the Defence Land Systems India (DLSI) joint venture established in 2009.

Developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to conduct a strategic review of the DLSI business, the statement said. Following that review, it has been jointly agreed that Mahindra & Mahindra will acquire BAE Systems’ 26 per cent shareholding in the entity.

Brigadier (Retd.) Khutub Hai, Chairman and Managing Director, Mahindra Defence Systems, said, “In keeping with the Indian defence acquisition scenario and current market considerations, the managements of Mahindra & Mahindra and BAE Systems have decided that Mahindra’s 100% subsidiary Mahindra Defence Systems will acquire BAE Systems’ 26 per cent shareholding in the Defence Land Systems India (DLSI) joint venture. This is a strategic decision and will enable both the companies to approach opportunities individually and to offer customised solutions to meet the needs of the Indian defence land systems domain”.

Dean McCumiskey, Managing Director and Chief Executive, India, BAE Systems, said, “India is a key international market for BAE Systems. The country’s ambitious plans for modernization and expansion of the armed forces and focus on developing self-reliance in defence present considerable opportunities for us. Building domestic capabilities in partnership with Indian companies will remain a cornerstone of our strategy in India”.