Mahindra forms a committee to quicken the M&M-Ssanyong deal

Mahindra & Mahindra is eyeing to hasten the process of acquiring Ssangyong Motors as few days back it was reported that its creditors have approved the deal. M&M will be a 70 per cent stake holder in the Korean SUV motor brand.

The Indian side of the deal has formed a committee to quicken the process of taking over Ssangyong. The team is is led by Dilip Sundram, the chief financial officer in M&M alongwith the Korean management and also the labor union members. As per the report they will meet next month to settle on various issues related to the deal.

The reports states that the integration process will commence with communication exercise which will prompt the growth strategies. This programme will be executed by a global consultant who will carry the program for 100 days scheduled to start in the early part of February.

Pawan Goenka, President of the Auto and Farm Equipment Sector, M&M said that the auto company is all set to complete the acquiring procedure and for that the company is working closely with the Korean company management team. The integration process work will commence in early February.

Ssangyong Motors has had its share of labour problems in past and to maintain a balance between the two, M&M has to take care with the strategy which should be in momentum with the Korean management. In 2009, the Korean company faced a major strike from its labour union which severely hit the production and the profit margins of the company. To strike out the deal in best way, M&M has to understand the needs of the environment there to make it a future success.

The deal between the companies also includes a tripartite agreement among the Ssangyong SYMC, M&M and the Ssangyong Motors which contains employment protection provisions.

Mr Goenka also stated that the company is in the procedure of finalizing the officials for the Korean counterpart. To strengthen the ties, the Korean management team paid a visit to the auto company last November.

As per the recent news available, the company is planning to send five-six employees to Korea to be a part of the management there. After the acqusition M&M will be able to come with better technology in its SUV. As per the news, the company will expand its global presence with Korean company's Rexton II and Korando C and will export it in various part of the globe.

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