Press Esc to close
Saturday 01 November 2014
News updated at 2:02 AM IST
Weather
Max: 28.4°C
Min : 18°C
In Bangalore
Partially cloudy

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
A view of the statue of Sardar Vallabhbhai Patel on the occasion of his birth anniversary...

A view of the statue of Sardar Vallabhbhai Patel on the occasion of his birth anniversary...

Congress President Sonia Gandhi and Rahul Gandhi paying tribute to former Prime Minister...

Congress President Sonia Gandhi and Rahul Gandhi paying tribute to former Prime Minister...

Artists perform during a function on the occasion of birth anniversary of Sardar...

Artists perform during a function on the occasion of birth anniversary of Sardar...

Members of Thamizhar Vazhvurimai Koottamaippu during a protest against Sri Lankan court's...

Members of Thamizhar Vazhvurimai Koottamaippu during a protest against Sri Lankan court's...

Indian cricket players during their practice session at barabati stadium in Cuttack...

Indian cricket players during their practice session at barabati stadium in Cuttack...

Delhi Police band performs at India Gate near Amar Jawan Jyoti to salute Sardar...

Delhi Police band performs at India Gate near Amar Jawan Jyoti to salute Sardar...

Army soldiers patrolling after an IED was recovered in a gas cylinder near the Circuit House...

Army soldiers patrolling after an IED was recovered in a gas cylinder near the Circuit House...

Tourist take pictures from a boat as people bath in the Ganges river in Varanasi...

Tourist take pictures from a boat as people bath in the Ganges river in Varanasi...

Devendra Fadnavis being sworn-in as the new Maharashtra Chief Minister by Governor...

Devendra Fadnavis being sworn-in as the new Maharashtra Chief Minister by Governor...

A camel herder sits as he feeds his camels at the annual cattle fair in Pushkar, in the Rajasthan...

A camel herder sits as he feeds his camels at the annual cattle fair in Pushkar, in the Rajasthan...

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