'Unnecessary speculation': Mahindra & Mahindra denies $3 billion China JV report, says this

Mahindra & Mahindra Ltd, whose shares were up 2 per cent on Friday, denied an agency report that suggested the Mahindra group was seeking the government approval to invest $3 billion with China's Shaanxi Automobile Group. M&M said the report is unfounded and there is no truth in the matter. 

"As there has been some unnecessary speculation raised by the Reuter’s article, the company on its own considers it necessary to clarify to the stock exchanges that the article is unfounded and there is no truth in the matter," M&M informed stock exchanges.

The Reuters had suggested that the JV with Shaanxi could result in setting up of an integrated car manufacturing facility in Gujarat. 

The report quoting sources suggested that the two companies were awaiting New Delhi's approval and, if approved, a majority stake in the proposed manufacturing venture would be owned by Mahindra.

As per the report, the proposal included building an export-oriented, integrated manufacture hub for assembled cars - known as completely built-up units - as well as engines and car batteries, the sources said. Mahindra has sought a government nod for the Chinese investment, the Reuters said. 

The M&M stock settled the day at Rs 2,748.45, up 2.46 per cent.