Press Esc to close
Thursday 25 August 2016
News updated at 11:56 PM IST
Weather
Max: 29.3°C
Min : 20.8°C
In Bengaluru
Sunny day

Mahindra signs pact to acquire SsangYong Motor

Last updated: 23 August, 2010
Mumbai, Aug 23 (PTI):

Auto major Mahindra & Mahindra on Monday said it has entered into an agreement to acquire a majority stake in beleaguered South Korean vehicle maker SsangYong Motor Company.

Anand G. Mahindra, Mahindra & Mahindra's vice chairman and managing director. AP

In a filing to the Bombay Stock Exchange, Mahindra & Mahindra (M&M) said that it has "signed a memorandum of understanding with SsangYong Motor to acquire a majority stake in the South Korean SUV maker."

The agreement will be followed by a detailed due diligence process and finalisation of definitive agreements, the filing added.

"We are committed to leveraging SsangYong's strong competencies in R&D and technology by investing in a new SYMC product portfolio which will help us gain momentum in global markets," M&M Automotive and Farm Sector President Pawan Goenka said.

He further said, "India is a rapidly growing SUV market and will create new growth avenues for SsangYong. The synergies between both the brands, which share a similar heritage will make us a combine force to reckon with in the global utility vehicle space."
Rothschild and Samsung Securities are advising M&M on the deal.

On August 12, M&M was chosen as the preferred bidder by SsangYong Motor. The company had said that deal is likely to be finalised by November this year but did not disclose the financials involved.

SsangYong Motor, which has SUV models like 'Rexton', 'Kyron' and 'Actyon' and sedan 'Chairman', has been undergoing a court-led restructuring from 2009 after suffering heavily due to the downturn in auto industry.

China's SAIC Motor Corp owns 10 per cent in the troubled automaker and about 70 per cent is held by creditors, led by state-owned Korea Development Bank.

SsangYong currently has two manufacturing facilities in South Korea and has an employee strength of 4,800 people. It has 138 dealers in its home country, while 1,300 dealers are located across 98 nations. It sold 35,000 units in 2009.

M&M had said once the deal is done, it would consider bringing the premium SUVs from SsangYong Motor's stable into India.

Shares of M&M were trading 2.02 per cent higher at Rs 630.25 a piece in late morning trade.


Go to Top

Photo Gallery
Children dressed Radha Krishna on the occasion of Sri Krishna Janmashtami celebrations...

Children dressed Radha Krishna on the occasion of Sri Krishna Janmashtami celebrations...

Renowned artist Partha Das hands over a potrait of Mother Teresa to Sister Lysa...

Renowned artist Partha Das hands over a potrait of Mother Teresa to Sister Lysa...

Sarbananda Sonowal feeding baby elephants rescued during the recent floods at Wildlife...

Sarbananda Sonowal feeding baby elephants rescued during the recent floods at Wildlife...

Members of AISA and JNUSU shout slogans during their protest in connection of JNU rape case...

Members of AISA and JNUSU shout slogans during their protest in connection of JNU rape case...

Devotees form a human pyramid to celebrate the festival of Janmashtami, marking the birth...

Devotees form a human pyramid to celebrate the festival of Janmashtami, marking the birth...

A devotee performs prayers at a Lord Shiva temple submerged in flood water of Ganga River...

A devotee performs prayers at a Lord Shiva temple submerged in flood water of Ganga River...

An aerial view of a flooded area in Allahabad on Thursday...

An aerial view of a flooded area in Allahabad on Thursday...

A view of lighting at Sri Krishna Janamsthan temple during Sri Krishna Janmashtami festiva...

A view of lighting at Sri Krishna Janamsthan temple during Sri Krishna Janmashtami festiva...

Muslim women carrying their children dressed up as Lord Krishna and Radha for a program...

Muslim women carrying their children dressed up as Lord Krishna and Radha for a program...

Bollywood actress Sonakshi Sinha at a press conference to promote her upcoming film in Jaipur...

Bollywood actress Sonakshi Sinha at a press conference to promote her upcoming film in Jaipur...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523