Mahindra Two Wheelers (MTWL), an unlisted subsidiary of Mahindra & Mahindra and part of the USD 16.5 billion Mahindra Group, has made a binding offer to acquire a 51% stake in Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in France.

PMTC, a key player in urban mobility in Europe for 116 years, is the oldest motorized two-wheeler manufacturer in the world, the company said. The transaction between MTWL and PSA, subject to Works Council consultation, as part of the employee dialogue process and anti-trust law, would involve infusion of Euro 15 million into PMTC to finance projects implemented through the strategic partnership, and further sale of shares by PSA which would allow MTWL to take a 51% stake in PMTC.

Shares of the company declined Rs 33.6, or 2.42%, to trade at Rs 1,356.95. The total volume of shares traded was 21,805 at the BSE (11.02 a.m., Tuesday).