TOKYO (dpa-AFX) - Mahindra & Mahindra Ltd. (MAHMF.PK), India's largest maker of tractors and sport-utility vehicles, is in advanced talks to buy French car maker PSA Peugeot Citroën's (PEUGF.PK) scooter business, Bloomberg reported citing three people familiar with the matter. The report said an announcement may be made soon.
The report indicated that the acquisition of Peugeot Motocycles would give Mumbai-based Mahindra access to Western technology as it seeks to compete with Hero MotoCorp Ltd. and Honda Motor Co. in India's growing two-wheeler market.
Peugeot closed an engine plant for the scooter business at the end of 2012, concentrating production at a factory in Mandeure in eastern France. Peugeot has struggled to compete with European scooter leader Piaggio & C. SpA of Italy.
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