M&M puts Finnish company Sampo on the block
(M&M) has put Finnish
combine harvester
maker
Sampo Rosenlew Oy
on the block, people aware of the developments said, as India's largest
tractor manufacturer
continues to sharpen focus on core businesses and redeploy capital from underperforming assets.
The step is in line with
Mahindra Group
's broader
capital allocation strategy
which prioritises high-growth, high-return businesses, while exiting non-core and non-performing ones, said the people cited above.
Since
Anish Shah
took charge as Group MD and CEO in April 2021, M&M has pruned its portfolio, exiting several overseas and domestic ventures outside its core utility vehicle and tractor segments.
The latest comes barely three years after M&M took full control of Sampo, having acquired a 35% stake in 2016, raising it to 74.97 per cent in 2020, and completed a 100 percent buyout in 2022.
Confirming the plan, an M&M spokesperson said, "As advised in our earnings calls in Q4FY25 and Q1FY26, we have had to take some actions on our subsidiary in Finland. These include rightsizing operations and impairing assets to reflect fundamental shifts in these markets." "At the moment our focus is around these actions," the spokesperson said.
Sampo, headquartered in Pori, supplies mid-sized combine harvesters to Europe, Eurasia, and North Africa. It is also a joint venture partner for combine harvesters in Algeria.
The Finnish company has struggled to deliver the returns M&M was seeking. Sapo's business has been hit by weak demand in key markets while it incurred costs on product development for emerging markets and specialty crops.
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