Mahindra & Mahindra’s (M&M) auto component unit, Mahindra Systems and Automotive Technology (MSAT) is making discussions to buy South African auto parts manufacturer S.P. Metal Forgings for about $200-$300 million.

For more than three years, S P Metal Forgings has turn out to be a large exporter to Europe, the UK and Israel. It offers parts for BMW, Peugeot and Renault and also provides services to the after-market and non-automotive companies.

The clients list of the company comprises the Henred Fruehauf, Jost, Nissan, Ford, Mazda and BMW. It had registerd income of USD 485 million during the last year.

The top utility vehicle and tractor maker (MSAT) is also exploring companies in the UK, Italy, China and Europe for stamping, composites, forging and gear box manufacture.

The shares of M&M rejected 2.41 percent to close the day at Rs 730.95. The total volume of shares traded yesterday was 44,159 on the BSE.