Reuters is reporting Mahindra is close to buying troubled design house Pininfarina.

Reuters is reporting Mahindra is close to buying troubled design house Pininfarina.

India-based Mahindra & Mahindra has apparently been negotiating with Pininfarina for several weeks about a potential takeover, but people familiar with the matter told Bloomberg the deal could still fall apart. A Pininfarina spokesman said their company has a good relationship with Mahindra, but refused to say anything about the possible transaction while a Mahindra representative declared they don't comment on media speculation.

It should be mentioned Pininfarina has posted significant losses in 10 of the past 11 years, but the good news is their shares recently went up by 10% and increased the company's value to €136 million.

As far as Mahindra is concerned, they acquired SsangYong Motor back in 2011 while last year they agreed to buy Peugeot Motorcycles. Towards the end of 2014, rumors emerged about the possibility of buying National Electric Vehicle Sweden (NEVS), the company that owns SAAB. If the deal with Pininfarina will be finalized, in a few years we will likely see a SsangYong SUV styled by the famous Italian auto design house.

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