Ashok Leyland Eyes Full Acquisition of SML Isuzu, Shares Surge

Ashok Leyland Ltd. (NSE:ASOK) shares surged over 4% on Wednesday following reports that the company is nearing a full acquisition of SML Isuzu Ltd. (NSE:SMLI). According to MoneyControl, the deal is in advanced stages, with Ashok Leyland in talks to acquire the combined 59% stake currently held by Japan’s Sumitomo Corp. (TYO:8053) and Isuzu Motors.

Sumitomo holds about 44% in SML Isuzu, while Isuzu owns around 15%. The total stake is estimated to be worth approximately ₹1,350 crore. Reports suggest Ashok Leyland may offer a 10-15% premium over SML Isuzu’s three-month average stock price to finalize the acquisition.

At 11:30 AM IST, Ashok Leyland’s stock jumped 4.3% to ₹219, its highest level since March 3. SML Isuzu also saw gains, with shares trading 3.4% higher at ₹1,663.

The acquisition could significantly strengthen Ashok Leyland’s position in the commercial vehicle segment, allowing it to expand its portfolio and market share. SML Isuzu is known for manufacturing light and medium-duty trucks and buses, making it a strategic fit for Ashok Leyland’s growth ambitions.

A corporate update call has been scheduled for March 26, following a sudden board meeting, fueling further speculation about the imminent announcement of the deal.

This potential buyout aligns with Ashok Leyland’s long-term vision of enhancing its footprint in the Indian commercial vehicle industry and tapping into new growth avenues. Investors are closely watching the developments, as the acquisition could reshape the competitive landscape of the sector.