Press Esc to close
Sunday 01 May 2016
News updated at 3:15 AM IST
Weather
Max: 37°C
Min : 24.5°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
A model walls the ramp at a fashion event in Ludhiana on Saturday...

A model walls the ramp at a fashion event in Ludhiana on Saturday...

A view of the West of Chord road, Rajajinagar 1st block Fly-Over inaugurated by Chief Minister...

A view of the West of Chord road, Rajajinagar 1st block Fly-Over inaugurated by Chief Minister...

Vehicles passing through snow bound Zojila Pass, situated at a height of 11,516 feet, on its way...

Vehicles passing through snow bound Zojila Pass, situated at a height of 11,516 feet, on its way...

An Army jawan stands guard at Zojila Pass, situated at a height of 11,516 feet...

An Army jawan stands guard at Zojila Pass, situated at a height of 11,516 feet...

The first transgander Presiding Officer Ria Sarkar in front of a Polling Station during 5th phase...

The first transgander Presiding Officer Ria Sarkar in front of a Polling Station during 5th phase...

Jawaharlal Nehru University Students' Union (JNUSU) president Kanhaiya Kumar pays tribute...

Jawaharlal Nehru University Students' Union (JNUSU) president Kanhaiya Kumar pays tribute...

Aircraft of the British aerobatics team Global Stars perform during second day of the the three-day.

Aircraft of the British aerobatics team Global Stars perform during second day of the the three-day.

People are travelling in underground stretch of the Namma Metro between the Mysuru road station...

People are travelling in underground stretch of the Namma Metro between the Mysuru road station...

The high rider-ship was evident as large number of commuters were thronging the station...

The high rider-ship was evident as large number of commuters were thronging the station...

Cricketer Virat Kohli during inauguration of a store in Hyderabad on Friday...

Cricketer Virat Kohli during inauguration of a store in Hyderabad on Friday...