Mahindra & Mahindra will this week start due diligence for a bid to buy the assets of court administered Ssangyong Motor, according to remarks by Dr Pawan Goenka, the head of the firm’s automotive division.
“The final bid and the bid amount will depend on the findings of the due diligence that would be completed over few weeks,” Goenka said.
He added that he will be visiting South Korea as part of the due diligence process.
The prospective bidders for the firm also include Renault as well as local companies Seoul Invest, a private equity fund, and YoungAn Hat, a maker of buses.
Analysts expect Renault to become a frontrunner in the bidding process, given the synergies that the deal would bring to its Korean unit, Renault Samsung. But Mahindra is also seen as a strong contender because it specialises in utility vehicles.
The shortlisted companies will conduct preliminary due diligence for about a month before submitting binding bids by July 20. A preferred bidder will be chosen in August.