Mahindra & Mahindra has inked a deal to acquire a majority stake in South Korean automaker Ssangyong.
The agreement – for an undisclosed sum – is now subject to due diligence with the Indian company maintaining Ssangyong will remain independent with Korean management.
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“Korea is one of the world’s leading centres of automotive excellence and Ssangyong brings with it a rich legacy of R&D and innovation,” said Mahindra Group vice chairman and managing director Anand Mahindra.
“India is a rapidly growing SUV market and will create new growth avenues for Ssangyong. The synergies between both the brands will make us a combined force to reckon with in the global UV space.”
Mahindra claims the deal will now make it the largest Indian employer in South Korea.
Ssangyong’s UK importer Koelliker welcomed today’s announcement with both companies specialising in diesel engines and four-wheel drive brands.
“It is good to know it is going ahead,” Koelliker managing director Paul Williams told just-auto. “Obviously there is a due process to go through.
“Clearly they [Mahindra] are sticking to their timetable, which is obviously encouraging.
Speculation has centred on the deal closing by November. Ssangyong is to launch its new C200 model on 20 September.
