Mahindra and Mahindra (M&M) intends to purchase Navistar International Corp?s stake in Mahindra Navistar Automotives (MNAL) and Mahindra Navistar Engines (MNEPL) for about Rs 175 crore. Following the buy, the joint venture (JV) firms will become Mahindra and Mahindra?s (M&M) wholly-owned subsidiaries, the company said in a statement. M&M holds a 51 per cent stake in both the companies, with the US-based Navistar holding the remaining 49 per cent stake. The deal is subject to the conclusion of definitive agreements, and is expected to be completed by early next year.

In late 2005, the companies had jointly set up MNAL to manufacture trucks and buses in India, source components and provide engineering services for Navistar?s vehicles. MNEPL was formed in 2007 and began producing engines in 2010.