Creditors of South Korea’s Ssangyong Motor are expected to sell the sport utility vehicle maker to a Chinese car maker, the Maeil Business Newspaper reportedly said in its early Wednesday edition.
According to Reuters, the newspaper quoted a high-ranking creditor bank official as saying Shanghai Automotive Industry Corp has been the strongest among seven to eight candidates for the takeover of Ssangyong Motor.
“We are giving a final look at terms of Shanghai’s takeover proposal,” an unnamed creditor bank official reportedly said, referring to employment guarantees and investment in new technology.
Reuters noted that Ssangyong has been up for sale since creditors took control of the debt-ridden Korean SUV specialist in 1999, when its parent Daewoo Group failed under a mountain of debt.
But a deal to sell the troubled vehicle maker to a Chinese chemicals firm, Blue Star, fell apart in March due to a disagreement on the price, the report added.
The report said they have neared an agreement on the price and expected to sign a memorandum of understanding on the sale in the second week of July.
Shanghai Automotive operates several car making ventures in China with General Motors, which took a majority stake with partners in the failed Daewoo Motor in 2002 to create GM Daewoo Technology Automotive, Reuters added.
The company also has joint ventures with Volkswagen and recently agreed a partnership with MG Rover.