Indian SUV specialist Mahindra and IT company Tech Mahindra, both part of the AU$233 billion Mahindra Group, have partnered to secure a controlling stake in styling house Pininfarina.
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The deal, announced today after months of talks, brings an end to uncertainty over the legendary Italian design firm’s future.

In 2007, it was revealed that Pininfarina had lost $177 million that financial year, leading stakeholders to invest more than $150 million into the business.

Further funds came as part of an agreement with creditor banks, and numerous debt restructuring deals have helped to keep the company afloat. As a result, 2013 saw Pininfarina turn its first profit since 2004.

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Today’s announcement sees Mahindra, and Tech Mahindra, sign an agreement with Pincar for a 76.06 per cent stake in the Pininfarina business, reportedly worth $255 million.

Pininfarina will remain an independent company listed in Milan, and Mahindra plans to invest a further $30 million in the styling house to help in both debt management and business growth.

The deal will give Mahindra greater access to a pool of talent that has styled a huge number of Ferrari, Alfa Romeo, Maserati, Lancia and Fiat models, along with a number of Peugeots, Fords and more.

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For Pininfarina, the deal will likely mean more SUVs, following the SEM DX7 concept revealed for the Shanghai motor show earlier this year (pictured above).

“The legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra group,” Chairman Anand Mahindra said in a statement.

“Given the increasing design sensibilities of today’s consumers, product design will greatly influence customer choice.”

The deal is expected to be finalised in the first half of 2016.