Mahindra Holidays & Resorts India Limited has signed agreements with the shareholders of Holiday Club Resorts Oy, Finland to initially acquire18.8% of its shares with a right to increase its ownership over a period of two years. This initial acquisition will be completed in a month’s time subject to required regulatory approvals.
The proposed acquisition will enable Mahindra Holidays to make significant inroads into the European markets and to leverage Holiday Club’s expertise in the vacation ownership model, as well as its strong technology platform and talent pool.
Once full ownership is achieved, the combined entity has the potential to become the largest vacation ownership company in the world, outside the United States.
Commenting on the acquisition, Anand Mahindra, Chairman, Mahindra Group, said, “The acquisition of Holiday Club Resorts will elevate Mahindra Holidays to a global leader in the vacation ownership industry. This timely acquisition not only provides access to European assets, technology and processes, but more importantly, provides a springboard to Mahindra Holidays for growth in Europe and other international destinations.”
Also commenting on the deal, Vesa Tengman, CEO Holiday Club, said “We warmly welcome a new shareholder with such a good reputation in the vacation ownership industry. We are excited about the various development opportunities and synergies that the collaboration of two market leaders will bring about. We look forward to prospecting new opportunities to expand further in Europe.”