Indian tractor and farm machine maker Mahindra & Mahindra (M&M) has signed a US$25 million agreement to buy a 33% stake in Mitsubishi Heavy Industries subsidiary, Mitsubishi Agricultural Machinery (MAM). Expected to be finalised by October 1, the two companies have committed on joint development of products, sharing of engines and transmissions, common sourcing of parts, reciprocal product access and do not rule out the possibility of cross-badging. There are no immediate plans to launch MAM tractors in India or for M&M to hike its stake further in the company, but president & chief executive Rajesh Jejurikar of M&M’s farm equipment division said the alliance is a win-win situation for the agricultural machinery businesses of both companies. “It will enable strategic growth avenues for MAM through Mahindra USA, China and other international markets, thereby speeding up international expansion,” he said. “It will also provide a platform for both the companies to leverage technology and product development synergies.” The two companies have a decade-long partnership in the US where Mitsubishi supplies OEM tractors to Mahindra USA as well as providing technical license to Mahindra for walk-behind rice planters and new tractors in India. Producing in excess of 200,000 tractors a year, and with over 2.1 million tractors sold to date, Mahindra is the world’s largest tractor manufacturer by volume. Selling tractors, combine harvesters, rice transplanters and other farm machinery, MAM is Japan’s fourth largest farm machinery manufacturer with revenues of US$408 million in the last financial year and 1,700 employees.