Mahindra Takes Majority Stake in PSA Scooter Unit

India's Mahindra & Mahindra Ltd. has invested $35 million to acquire 51% of PSA Peugeot Citroen's scooter division.

Mahindra says the deal involves a $19 million cash payment and the purchase of $16 million in the PSA Scooter's shares.

The PSA division generated about $125 million in revenue in 2013 and reported a pretax loss of $75 million in fiscal 2013-2014, according to the Financial Times.

PSA, which describes itself as the world's oldest name in scooters, says the agreement will ensure continuation of the brand. The FT says India surpassed China in 2012 as the world's largest market for two-wheel vehicles.