Media reports indicate that GM is preparing to make a bid for South Korean SUV manufacturer Ssangyong Motors. Ssangyong has been under a debt workout program since it broke free from the Daewoo Group, which was dissolved in 1999.
Reuters reported that the 55.4 percent stake in Ssangyong creditors are selling would be worth 625 billion won ($523 million) based on market prices, but a premium is likely since it is a controlling stake.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The report added that a spokesman at GM’s South Korean unit said the U.S. car giant had submitted a letter of interest in buying Ssangyong, the country’s smallest auto maker with a 10 percent market share, although he said GM had not definitely decided to bid.
“GM has communicated its intention to participate in the auction of Ssangyong Motor,” said Rene Kreis, a spokesman for GM Daewoo Automotive & Technology Co. told Reuters.
If GM submits a formal buyout proposal, it is pitting itself against around 10 other potential buyers. Bidders have been asked to submit letters of intent to acquire Ssangyong Motor by December 11, delayed from Dec. 2 originally planned.
