Pincar, the controlling shareholder of Italy’s independent design studio Pininfarina has recently confirmed that India’s Mahindra & Mahindra has entered negotiations to purchase the automotive firm.
According to data from Bloomberg, Pincar has a 76 percent stake in the company, and the Pininfarina family in turn owns the investment firm. The controlling shareholder said in a recent statement delivered to the Italian stock exchange that Mahindra and Pininfarina have not yet reached any binding deal regarding a takeover. Pincar added it had been mulling several financial options in regards to the design studio’s future with several financial institutions and among them it was also the eventual dissolution of its stake. According to reports, after months of negotiations, sources that have knowledge of the proceeds said that India’s Mahindra was closing in on the buyout. The people, who declined to provide their identity because the talks are still not a public matter, said the deal could still crumble.
Established back in 1930, Turin-based Pininfarina has been implicated in the automotive industry ever since, designing such classic icons as the Ferrari 250 GT and the 1950s Alfa Romeo Giulietta Spider. The company has in turn been losing lots of money in recent years and has gathered a bank debt that is close to its market value. While expanding to also design buildings, interiors, furniture and electronics, the studio has struggled because its main automotive practice suffered – automakers are now hiring more designers and established their own in-house styling divisions.
Via Automotive News Europe