M&M Associate Firm Ceases Operations in Canada Amid India-Canada Bilateral Tensions

Amid the ongoing diplomatic clash between India and Canada, the Canada-based subsidiary of the Indian auto major, Mahindra & Mahindra (M&M), known as Resson Aerospace Corporation, has ceased its operations. M&M has acknowledged this fact in its exchange filing.

“Resson has received a Certificate of Dissolution from Corporations Canada, dated September 20, 2023, which has been communicated to the company,” Mahindra & Mahindra (M&M) stated in a regulatory filing. Mumbai-based M&M had held an 11.18 percent stake in Resson Aerospace. However, it is not clear whether the winding-up is to the India-Canada dispute.

With the liquidation in effect, Resson is no longer associated with M&M. “Upon the liquidation of Resson, the company is entitled to receive approximately 4.7 million Canadian Dollars (equivalent to ?28.7 crore) as a distribution of proceeds towards Class C Preferred Shares held by the company,” M&M announced.

M&M”s shares have dipped by 1.93% and are trading on the BSE at 1602.55 in early trading on Friday.

Canadian Prime Minister Justin Trudeau alleged a “potential link” between “agents of the Government of India” and the killing of Khalistan separatist Hardeep Singh Nijjar, leading to the expulsion of a senior Indian diplomat from Canada. In response, India expelled the Canadian Commissioner. Both countries have issued travel advisories urging their citizens to exercise caution while traveling.

India has also suspended visa services in Canada, citing “security threats” that prevent their officials from carrying out visa functions.