NEW DELHI: Mahindra & Mahindra on Monday said it has formed a joint venture with Chinese tractor manufacturer Jiangsu Yueda Yancheng.

The homegrown auto major would invest 26 million dollar in the joint venture firm -- Mahindra Yueda Yancheng Tractor -- where M&M would hold 51 per cent stake, while the rest would be with the Chinese partner.

According to the agreement, the tractor related assets and current liabilities from Yancheng tractors would be transferred to the JV company. The net assets transferred to the JV is valued at 50 million dollar.