Pininfarina – Mahindra deal close to be signed

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After months of speculations around the takeover of the Italian car designer house Pininfarina by Indian automaker Mahindra, the negotiations seem to be in the final stage. The first rumours about the acquisition of the Italian car designer house Pininfarina by the Indian automaker Mahindra & Mahindra have emerged in March this year. But since then, the deal has not been closed, and only speculations have appeared from time to time, the last ones more than two months ago when it was said that the takeover would be closed in a few weeks’ time. Now, the latest reports suggest the last details of the agreement seem to be in the final stage. “Negotiations between controlling shareholder Pincar, creditor banks and Mahindra over the acquisition of Pininfarina’s shares owned by Pincar and debt restructuring never broke off,” the car designer recently said. The past ten years were a struggle for Pininfarina, as the company’s debts have accumulated at a high pace. Its net debt was 57 million dollars at the end of the first half of this year. This is because it has not been a demand for small design companies for a while, as the automakers have lately preferred to draw their cars in their own design departments. Pininfarina already works with Mahindra, but the Indian automaker wants to expand the collaboration even further, after its taking over of South Korean carmaker Ssangyong and the scooter unit of French auto manufacturer PSA Peugeot Citroen. Pininfarina was founded in 1930 and has designed cars for Ferrari, Maserati, Rolls-Royce and Cadillac, but has also have been involved in other various projects not related with the automotive industry, from constructions, to vending machines or toothbrushes. Via Automotive News Europe