Mahindra Trucks and Buses Sale to SML Mahindra on Slump Sale Basis

• Mahindra & Mahindra Limited has sold its Trucks and Buses Division to SML Mahindra Limited for ₹525 crore.
• The sale was made on a slump sale basis, transferring the entire division as a going concern.
• Khaitan & Co advised Mahindra & Mahindra on this transaction, while AZB & Partners advised SML Mahindra.
• The deal may set a precedent for future mergers and acquisitions in India, particularly with regards to slump sale consideration.

This transaction is significant not only because of its value but also because it sets a precedent for future mergers and acquisitions in India.

Mahindra & Mahindra Limited has sold its Trucks and Buses Division to SML Mahindra Limited for a consideration of ₹525 crore. The sale was made on a slump sale basis, which means that the entire division, including employees, assets, intellectual property, licences, permits, insurance policies, contracts, rights, and liabilities, were transferred as a going concern. This transaction is significant not only because of its value but also because it sets a precedent for future mergers and acquisitions in India.

The sale was advised by Khaitan & Co, which provided comprehensive legal and advisory support across all aspects of the transaction. The firm's team consisted of experienced lawyers, including Ashraya Rao, Vidur Sinha, Vaishanshi Bhardwaj, and Hansaja Pandya. Other members of the team provided assistance in structuring related advisory for listed entities and securities law matters.

Meanwhile, AZB & Partners advised SML Mahindra on this transaction. Their team included Anil Kasturi, Ashish Pareek, and others who worked closely with Khaitan & Co to ensure a smooth transfer of the division.

The slump sale consideration of ₹525 crore may set a precedent for future transactions in India. This method of valuation is often used in mergers and acquisitions, where the entire business unit is sold as a single entity rather than individual assets or liabilities. The Indian M&A law provides a framework for such transactions, allowing companies to transfer their businesses with minimal disruption.

In 2025, Khaitan & Co had advised Mahindra & Mahindra on the acquisition of SML Isuzu, which now operates as SML Mahindra. This experience likely played a crucial role in facilitating the current transaction. The firm's expertise in Indian M&A law and its ability to navigate complex transactions make it an attractive choice for clients seeking advice on such matters.

The working capital adjustments that are part of this deal will also be closely watched by lawyers advising clients on Indian mergers and acquisitions. This aspect of the transaction highlights the importance of careful planning and execution in M&A deals, where even small details can have significant implications.

The sale of Mahindra & Mahindra's Trucks and Buses Division to SML Mahindra has far-reaching implications for the Indian automotive industry. The deal demonstrates the growing importance of consolidation in this sector, where companies are seeking to strengthen their market position through strategic acquisitions.

From a legal perspective, this transaction sets an important precedent for future M&A deals in India. The slump sale consideration and working capital adjustments will be closely studied by lawyers advising clients on such transactions. As Indian companies continue to navigate the complexities of M&A law, they will need to carefully consider the implications of this deal and how it may impact their own business strategies.

Lawyers advising clients on Indian mergers and acquisitions should note the slump sale consideration of ₹525 crore, which may set a precedent for future transactions.

Source: Original reporting via [Source]