Tech Mahindra and Mahindra & Mahindra (M&M) have jointly entered into an agreement with Pincar S.r.l, to purchase a controlling stake in Pininfarina S.p.A, the Italian brand known for its automotive and industrial designs. The purchase of controlling stake will be carried out by a Joint Venture (JV) company. Tech Mahindra will hold the 60 per cent stake in the JV company whereas Mahindra will hold the rest. The JV company will purchase 76.06 per cent of Pininfarina shares from the current controlling shareholder Pincar S.r.l at a price of Euro 1.1 per share. This will be followed by an open offer for all the remaining ordinary shares of Pininfarina, at the same purchase price paid for the shares held by Pincar. A rights issue to infuse funds into the design and styling major will also be executed before the end of 2016. Given the fact that the number of fully built CVs are on the rise, the arrangement is expected to significantly enhance the design capabilities of the Mahindra Group, which includes two wheelers, passenger vehicles and commercial vehicles. The acquisition of a controlling stake in Pininfarina is expected to help Mahindra Group gain a stronger foot hold in areas like automotive styling, design and development. Also expected to help gain a stronger foot hold in the area of reinforced body engineering capability, the acquisition of a controlling stake in Pininfarina will enable Tech Mahindra’s Integrated Engineering Solutions (IES) business compete better in the area of Automotive Engineering Services.