Mahindra & Mahindra (M&M) Indian leading SUVs maker on 23 Nov said it has signed a definitive agreement with Korean(South) Automaker SsangYong Motor Company (SYMC) to acquire 70 percent stake for $463 million which include $378-million of new SsangYong stocks and $85-million of SsangYong bonds.
M&M said it acquisition may be done by end of March 2011.
Recently, Mahindra & Mahindra (M&M) has received a green signal from the court in Seoul and the company has also reached to an agreement with the SsangYong labour union.
Mahindra & Mahindra (M&M) has signed a tripartite agreement that contains provisions for employment protection, long-term investment and commitment for no labor dispute. SsangYong is likely to retain Korean management after the acquisition.
"The coming together of Mahindra and SsangYong will result in a competitive global UV player. Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy while SsangYong has strong capabilities in technology," M&M president (automotive & farm equipment sectors) Pawan Goenka said.
He said there was also an opportunity to introduce a premium portfolio of SUVs in the Indian market, providing a new growth avenue for SsangYong and "further strengthen our dominant position in the UV segment".
SsangYong Motors is a major manufacturer of sports utility vehicles (SUV) and recreational vehicles (RV), thus giving Mahindra & Mahindra (M&M) a wide market to make mark.
Src: [NDTV]
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