MUMBAI, Nov 4: The Mahindra group has divested its 40 per cent holding in International Instruments in favour of partner, Mannesmann VDO AG of Germany, whose stake is now up to 80 per cent. The consideration for the Mahindras is not known and the divestment is part of the group's strategy to move away from non-core areas.

According to a press release issued here on Tuesday, although the Mahindras have in their fold an auto component business sector, it is focussed on identified areas of critical importance. The group will retain only those investments in companies that have synergy with its existing line of business.

The transaction when approved by the authorities and government institutions will make VDO a majority stakeholder in International Instruments. The Mannesmann-owned German automotive systems group and world market leader in instrumentation has been the co-promoter in International Instruments since the early sixties.

The majority holding of 80 per cent will enable VDO to reinforce in the country marketing of its entire range of automotive information, control and fuel systems reaching as far as development and just-in-time production of completed vehicular models such as cockpit and integrated tank modules.

For International Instruments, a closer association with VDO will secure technology transfers, specifically in state-of-the-art information management.

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