Mahindra-Ssangyong likely to sign deal by mid-Nov
Mahindra & Mahindra, one of the leading tractor brands of the world and the renowned auto major of India is now in the final stage of signing its deal for the acquisition of Ssangyong Motor Company, the South Korean sports utility vehicle maker. The company has discussed with Bae Kim & Lee, largest legal firm of South Korea, for drafting the final agreement of share purchase for strengthening the deal. The company also intends to sign this significant final agreement by the second week of November. Once the deal is signed, it will help Mahindra and Mahindra in launching the Rexton II and Korando C – the flagship SUV models of Ssangyong- into the Indian auto market which is full of opportunities for various vehicles. According to a company official, they have a confidential clause and they could not comment on those topics.
Mahindra Mahindra, one of the leading tractor brands of the world and the renowned auto major of India is now in the final stage of signing its deal for the acquisition of Ssangyong Motor Company, the South Korean sports utility vehicle maker. The company has discussed with Bae Kim Lee, largest legal firm of South Korea, for drafting the final agreement of share purchase for strengthening the deal. The company also intends to sign this significant final agreement by the second week of November. Once the deal is signed, it will help Mahindra and Mahindra in launching the Rexton II and Korando C – the flagship SUV models of Ssangyong- into the Indian auto market which is full of opportunities for various vehicles. According to a company official, they have a confidential clause and they could not comment on those topics.
Next week, the senior officials of Mahindra Mahindra and Ssangyong Motor Company are going to meet in Seoul. This meeting aims at discussing “bid adjustment price” which will be based on explanations from due-diligence. According to an investment banker, who is close to the matter, the ultimate price may differ a little. As per the auto analysts and experts, this price is expected to be in the price range of $500-550 million. It is also being expected that during the time of the signing of final agreement between MM and Ssangyong, the top executives of the company will definitely be there. This will include MM’s automotive division head Pawan Goenka. The final agreement is expected to be signed in Seoul in the coming month.
Deepesh Rathore, MD at market research firm IHS Automotive stated that the quick beginning of the procedure will provie Mahindra Mahindra an edge in introducing the new models in India which is presently the second-fastest growing automotive market of the world. A new platform C200 SUV has also been developed by the company. This platform is said to be the first monocoque chassis that has been made by the company. Mahindra Mahindra is also going through the procedure of selecting internal candidates who would be able to work with the Korean management.
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