Chennai, Dec 3 (IANS): The board of Mahindra and Mahindra Ltd (M&M) on Saturday decided to take over the two-wheeler business of Mahindra Two Wheelers Ltd - a step-down subsidiary.

In a regulatory filing with BSE, M&M said its board of directors at a meeting approved a scheme of arrangement between the company and Mahindra Two Wheelers, under which the two-wheeler business will be vested with M&M as a going concern subject to necessary approvals.

The Rs 583 crore turnover Mahindra Two Wheelers is a subsidiary of Mahindra Vehicle Manufacturers Ltd, a wholly- owned subsidiary of M&M.

According to M&M, the appointed date for the scheme is October 1, 2016.

Shareholders of Mahindra Two Wheelers will be issued one ordinary equity shares of M&M for every 461 shares held in the former.

As to the rationale for takeover, M&M said the business could benefit from its design, development and sourcing capabilities.

Post demerger, Mahindra Two Wheelers will focus on spares business.