BREAKING – Mahindra to purchase 70% of Ssangyong for US$378 million

Posted by Harvinder

November 23, 2010

A report by Autonews has indicated that Mahindra & Mahindra Ltd. is set to purchase a 70% stake in the troubled Ssangyong Motor Co., which would give the Indian giant a controlling stake. The report stated that the 70% stake is valued at US$378 million which is about 427.1 billion won. Ssangyong which went into court receivership early last year was formerly owned by China’s SAIC.

The stake purchase would need approval from Ssangyong’s creditors and Mahindra also revealed its intention of purchasing US$84 million (95.4 billion won ) worth of new bonds from Ssangyong. This news comes after Mahindra was named preferred bidder of the Korean auto company in August. The report also stated that Mahindra aims to complete the acquisition by March 2011.

A report by The Hindustan Times stated that both companies have officially signed a deal on the acquisition. Pictured above is the Italdesign Giugiaro-designed Ssangyong Korando which has been approved for production.

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