M&M puts the Finnish company Sampo on the block

Mumbai: Mahindra & Mahindra (M&M) have put the Finnish Combine Harvester Maker Sampo Roslew Oy on the block, said people who are aware of the developments, while the largest tractor manufacturer of India continues to focus on core activities and capital use of underresting activa.

The step is in accordance with the wider capital allocation strategy of Mahindra Group that prioritizes fast-growing companies with a high returnnel, while leaving non-core and non-performance, according to the people mentioned above.

Because Anish Shah took the lead as a group of MD and CEO in April 2021, M&M cut his portfolio and left various overseas and domestic companies outside its core tools and tractor segments.

The latter was barely three years after M&M had taken over the full control of Sampo, after he had acquired an interest of 35% in 2016, which increased to 74.97% and a 100% buy -out in 2020 in 2020 in 2022.

A spokesperson for the plan confirmed the plan and said: “As advised in our profit calls in Q4FY25 and Q1FY26, we had to take some actions on our subsidiary in Finland. These include rights and malfunctions to display fundamental shifts in these markets.” “At the moment our focus is on these actions,” said the spokesperson.

Sampo, with headquarters in Pori, supplies medium-sized combine porsers to Europe, Eurasia and North Africa. It is also a joint venture partner for Combine Harvesters in Algeria. The Finnish company has difficulty delivering the returns that M&M was looking for. The activities of SAPO have been hit by a weak demand in important markets, while it has incurred costs for product development for emerging markets and special crops.