Shares of Mahindra & Mahindra (M&M) rose 2% after the company received unconditional approval from the Competition Commission of India (CCI) for its proposed acquisition of a controlling stake in SML Isuzu Limited. As of 9:42 AM, the shares were trading 1.91% higher at Rs 3,064.70.

The acquisition involves purchasing a total 58.96% stake in SML Isuzu through two transactions—43.96% from promoter Sumitomo Corporation and 15% from public shareholder Isuzu Motors Ltd. Following the acquisition, M&M will launch an open offer to acquire up to 26% of the remaining equity from public shareholders at ₹1,554.60 per share, as per SEBI’s takeover norms.

The CCI clearance, communicated on June 17 under Section 31(1) of the Competition Act, 2002, removes a key regulatory hurdle for the deal. M&M is expected to move ahead with the share purchase and open offer process shortly.

The acquisition is part of M&M’s strategy to expand its presence in the commercial vehicle segment above 3.5 tonnes. Currently holding a 3% market share in this category, M&M aims to double its share to 6% with the completion of the transaction. The company further targets a market share of 10–12% by FY31 and 20% by FY36.

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