Mahindra & Mahindra (M&M) is likely to hit much-rumored Aston Martin deal this week, sources with direct knowledge of the matter said.

Speaking on the condition of anonymity, three people aware with developments revealed that renowned sports-car maker Aston Martin’s owner Investment Dar Co had received competing bids from M&M and London-based private-equity fund Investindustrial for 50 per cent stake in the car maker. The sources further said that M&M was poised to overshadow Investindustrial and other contenders in the race.

However, the sources added that negotiations were still on with the car maker’s shareholders and management.

Two days back, Bloomberg reported that M&M had placed a higher bid than the Italian PE fund for a 50 per cent stake in Aston Martin. The report also stated that M&M would likely initially acquire a minority stake of nearly 40 per cent but would have the option to hike the stake to 50 per cent.

The remaining stake will likely be retained by Aston Martin’s three existing shareholders plus the management team. The operations team of the car maker’s too is unlikely to change even after the entry of a new strategic partner.

M&M will likely have to fork out 120-200 million pounds to acquire a strategic stake in Aston Martin, which is currently owned by a Kuwait-based consortium of financial sponsors led by Investment Dar who acquired the renowned luxury car maker from Ford Motors in 2007 for 479 million pounds.