British International Investment’s $250 Million Investment in Electric Vehicles Joint Venture With Mahindra & Mahindra

Cleary Gottlieb advised British International Investment (BII), the UK’s development finance institution and impact investor, in a joint venture partnership with Mahindra & Mahindra (M&M).

BII is to invest up to $250 million in a new joint venture that will develop four-wheel passenger electric vehicles for Indian consumers and other markets around the world.

The transaction involved a complex set of intra-group licensing, supply, and manufacturing arrangements, where the business and Cleary teams worked closely to develop structures that provided BII with the necessary comfort while respecting the experience and management expertise of M&M.

The investment will result in BII acquiring up to 5% of the business, at an equity valuation of up to $9 billion. M&M will match BII’s anchor commitment of up to $250 million, and the two partners will work to attract other like-minded investors into the new EV business over the next few years. The investment is expected to significantly accelerate the availability and adoption of electric vehicles in India and other markets served by M&M. It is anticipated that the business will contribute towards 2.1 million tons of C02 equivalent emission avoidance and lead to the creation of around 8,000 skilled jobs – a quarter of which are expected to be filled by women.

This matter closed on July 7, 2022