Mumbai, April 27 -- Mahindra & Mahindra Ltd (M&M) entered into an agreement to acquire 58.96 per cent stake in SML Isuzu Ltd. (SML) at Rs 650 per share, which is an outlay of Rs 555 crore, according to a statement issued by the automobile major.

In addition, M&M will make an open offer in accordance with the SEBI Takeover Regulations.

The proposed acquisition is a step towards establishing a strong presence in the 3.5T CV segment, where M&M has a 3 per cent market share today, as compared to a 52 per cent market share in the 3.5T LCV segment.

Dr Anish Shah, Group CEO & MD of the Mahindra Group, said, "The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses...