Indian utility vehicle manufacturer Mahindra & Mahindra has been in talks with independent Italian car design firm and coachbuilder Pininfarina SpA for a possible acquisition.

The companies reached an agreement on Monday and as part of the deal, Tech Mahindra and Mahindra & Mahindra will purchase 76.06% of Pininfarina shares from the current controlling shareholder Pincar S.r.l. by June 2016.

In the 76.06% shares Tech Mahindra will hold 60% shares while the remaining part will be owned by Mahindra & Mahindra. The acquiring process will be continued with an open offer to the Italian company's minority shareholders and a rights issue later in the year to infuse funds in it.

The Cambiano-based Pininfarina, which is known for custom car designing, has designed Ferrari, Alfa Romeo, Peugeot, Fiat, GM, Lancia and Maserati. Pininfarina will remain an independent company, listed on the Milan Stock Exchange and the current chairman, Paolo Pininfarina will continue in his post.

"Pininfarina will add enormous value to Tech Mahindra's portfolio of engineering services. The legendary high-end design credentials of Pininfarina will significantly enhance the design capabilities of the entire Mahindra Group," said Anand Mahindra, Chairman Mahindra Group.

Founded in 1930, Pininfarina is known for its association with fellow Italian sports car maker, Ferrari. The company has designed close to 100 models of Ferrari; one of the famous models being the Ferrari P4/5. The one-off sports car made by Ferrari was redesigned by Pininfarina for film director and stock exchange magnate James Glickenhaus.

Mahindra & Mahindra is known for acquiring international brands. In 2011, the company acquired a majority stake in South Korean automaker SsangYong Motor Company. In 2014, Mahindra bought motorcycle unit of France-based PSA Peugeot Citroen. The company was also keen on buying British brand Aston Martin in 2012 but withdrew later on. 

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