TCS to acquire 100% stake in Porsche subsidiary MHP for €320 million; everything investors need to know

The TCS board of directors approved the acquisition of a full stake in MHP Management—und IT—Beratung GmbH, a subsidiary of Porsche AG, for an enterprise value of €320 million. The partnership is reinforced by a five-year strategic deal from Porsche.

However, the proposed partnership and acquisition remain subject to regulatory approvals. The transaction requires approval from the European Commission under the EU Merger Regulation and the EU Foreign Subsidies Regulation.

In addition, approval is required from Romania’s Commission for the Examination of Foreign Direct Investments under applicable Romanian foreign direct investment laws. An application for a certificate of non-objection will also be submitted to Germany’s Federal Ministry of Economy and Energy.

As part of the deal, which is expected to be completed within 3-4 months, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience.

“As AI, software, and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering, technology and business transformation with MHP’s strong automotive consulting expertise,” said K. Krithivasan, CEO and Managing Director, Tata Consultancy Services.

The collaboration will focus on scaling AI execution for Porsche, with TCS setting up a dedicated AI Mobility Centre of Excellence (CoE). The CoE will focus on industrialising use cases across core mobility technologies, while TCS and Porsche will work on embedding AI across intelligent manufacturing and operations, engineering, and customer experience.

It will also focus on creating a platform for long-term value creation by scaling AI transformation and business outcomes across Porsche’s organisation and mobility ecosystem. The acquisition is expected to strengthen TCS’ presence in the German market and among European automotive and industrial customers.

Deutsche Bank AG acted as financial advisor and Noerr as legal counsel to TCS.

“Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services. At the same time, we are gaining a strategic partner in TCS,” said Dr. Michael Leiters, CEO, Porsche AG.

“By combining Porsche’s automotive expertise with TCS’ digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency, and boost our competitiveness in an increasingly data and software-driven world of mobility,” added Leiters.

MHP is a leader in automotive and industrial consulting. MHP provides business consulting, digital transformation, AI, SAP transformation, manufacturing digitalization, connected mobility and software-defined mobility to automotive and industrial clients. It was a fully owned subsidiary of Porsche AG, incorporated on May 13, 1996.

On Monday, TCS shares settled at ₹2,284.10 apiece on the National Stock Exchange, falling 0.78%.