Is Mahindra buying Reva soon?

The news regarding Mahindra taking over Reva is heating up fast so much so that the stock prices of Mahindra took a slip at the Bombay Stock Exchange. However, the speculation is that Mahindra is all set to takeover Reva in a day or two claim sources. It is also being said that the two companies may sign an agreement in a day or two followed by an announcement could be made thereafter. The estimated value of the deal is pegged at USD 100 million (around Rs 450 crore).

But Reva's Deputy Chairman and Chief Technology Officer Chetan Maini is not ready to comment on the speculation of any sort. If the industry observers are to be believed then M&M might take over only the management control of the Bangalore-based electric car maker. The company is expected to retain the "executive" services. But even Mahindra spokesperson is not interested in commenting on the speculation as of now. However, last month Reva had made it public that they were open to undertaking contract manufacturing for other companies.

At the moment Reva is in a tie up with General Motors (GM) for making electric 'Spark'. The Bangalore based company Reva and GM had announced their tie up last year and are all set to roll out e-spark in a few months. The car was also displayed at the Auto Expo in Delhi in January. The Reva Electric Car Company is a joint venture between Maini Group and US-based AEV LLC. Reva is also funded by Global Environment Fund and Draper Fisher Jurvetson.