Mahindra bids for S Korean SUV maker Ssangyong
Published On May 29, 2010 08:11 PM By Meenal
Mahindra & Mahindra, country's largest SUV maker has made bids to buy Ssangyong Motor Corp, a South Korea’s bankrupt firm. Interestingly, Renault group, a France based leading car maker which has recently ended a 5 year old joint venture with Mahindra group, has also made bids for this Korean firm. The Mahindra and Renault had entered into a partnership in year 2005 when both of the companies started manufacturing Logan sedan in India. But due to the recently surfaced differences on the issues like pricing and designing the joint venture came to an end in April 2010.
The bidding value for Ssangyong Motor Corp, which has around 2% market share in the Korean market, is expected to be in the range of $300-$500 million. The company sales some of the popular SUV's in the Korean market including Rexton and Kyron which will definitely help Mahindra & Mahindra in enhancing its operations in markets like South-Korea if it gets succeed in buying this bankrupt firm.
Company's expertise lies in turning around sick companies and therein lies the primary synergy for its interest in the company. It has identified value in this company and therefore, has put in a bid for the same, said Mr Pawan Kumar Ruia, in a statement to a leading business daily.