Mahindra Resorts & Holidays, the holiday resort subsidiary of conglomerate Mahindra Group, has invested €13m ($17.7m) in Finland-based holiday destination owner Holiday Club Resorts, the Economic Times reported yesterday.
The money will buy an initial 18.8% stake, which newspaper Times of India stated will increase into a full ownership by 2016 through a €73m ($99.4m) investment.
A full acquisition of Holiday Club would enable Mahindra Resorts & Holidays to become the biggest holiday resort and home company outside the United States, and would also provide it with a base in Western Europe.
In 2013, Mahindra purchased a 9% stake in Dubai-based Arabian Dreams in a move also intended to increase its presence overseas.
Holiday Club Resorts has assets in Finland, Sweden, Spain and the Canary Islands. It is owned by a consortium including pension insurance provider Varma, Finnish Industry Investment, Ilmarinen, the Fennia Group and a group of Finnish private investors.
The initial acquisition will be completed in a month’s time, subject to required regulatory approvals.