Mahindra and Mahindra have signed an MoU with the Korean auto maker Ssangyong Motors to take over the auto maker but has not disclosed any figures for the deal signed. “We give the takeover candidate (Mahindra and Mahindra) an exclusive right for negotiation, and won't be involved in any takeover-related activities with a third party," the company said. M&M is expected to jointly produce the SUVs after it takes over the Korean company.
“Some people have doubts about Mahindra’s ability to revive Ssangyong after SAIC, which is a bigger company than Mahindra, failed to do so,” Ahn Soo Woong, a Seoul-based analyst at LIG Investment & Securities Co., said last week. “So far, Mahindra has shown strong commitment to the deal.”
SYMC has SUV models like ‘Rexton’, ‘Kyron’ and ‘Actyon’ and sedan ‘Chairman’. The company has been undergoing a court-led restructuring from 2009 after suffering heavily due to the downturn in auto industry. Rothschild and Samsung Securities are advising Mahindra on this deal, it said. On August 12 Ssangyong had named Mahindra as its preferred buyer.
