Mahindra & Mahindra, India’s biggest tractor and utility vehicle maker, is considering bidding for Hawker Beechcraft Inc., the bankrupt aircraft maker part owned by Goldman Sachs Group Inc. (GS), Bloomberg News reported Thursday on its website, citing an unnamed person with knowledge of the matter.
It said Roma Balwani, a spokeswoman for Mahindra, said the company doesn’t comment on speculation.
Hawker Beechcraft, part owned by Goldman Sachs Group, is on the selling block and the agency said that the Indian automobile firm with manufacturing interests in turbo prop aircrafts may be a likely suitor.
“This is a sensible move as with an acquisition, they get access to years’ worth of technology and certification,” said Mathur, a Gurgaon, India-based executive director at PwC’s unit. “Mahindra will jump up the value chain.
It’ll give them aersopace capabilities. They will be able to participate as an OEM and not a partner of an OEM.”
Hawker Beechcraft Inc, which makes the Beechcraft King Air turboprop and Hawker 4000 business jet, filed a reorganisation plan in the U.S. Bankruptcy Court on June 30 that would give control of the company to secured creditors who hold debt valued at almost $922 million.
This not the first time when Mahindra & Mahindra is looking for the aerospace industry. In 2009, Mahindra purchased control stakes in Gippsland Aeronautics and Aerostaff Australia to better position itself for the defence offsets market in Australia.
According to media reports, the Indian company has paid nearly $38 million to take majority holdings in the two companies in association with Kotak Private Equity to increase its presence in the aerospace sector.