South Korean SUV maker SSangyong is up for sale in the international market. Mahindra and Essar Group from India are in the race to acquire the South Korean brand along with others like Renault. The company suffered a massive set back in 2008 and had been under government re-structuring since then.
Mahindra on Thursday stated that it has been chosen as the preferred bidder for the company. This makes the company as a distinguished bidder and it has announced that it will sign a MoU with Ssangyong which will be followed by due diligence in September and a final agreement by November or December.
"I think what this deal does for us is provide us with a tremendous opportunity to accelerate our progress towards our stated intention of becoming a globally recognised player in the specific niche of utility vehicles," Anand Mahindra, vice-chairman and managing director, M&M.
In south Korean, Ssangyong(pronounced as Sanyo) means “Double Dragon.” It is one of the major SUV makers in the country and has seven vehicle models including two large sized sedans, 4 SUVs and 1 MPV. The new acquisition will give the much needed leverage to M&M which will be able to introduce a new SUV model in the Indian market priced above Rs. 11 lakh. It will also give the company an access to approximately Ssangyong 1200 dealerships across the globe especially in Russia and Europe.
