Auto major Mahindra & Mahindra plans to start due diligence for South Korean Ssangyong Motor in a day or two, a senior company official said.
“We will be starting the due diligence in a day or two... The final bid amount will depend on the findings of the due diligence process,” M&M president for auto and farm equipment Pawan Goenka said.
The Anand Mahindra-led company is keen to acquire the troubled South Korean auto major as it would enable it to expand overseas, especially in Asia. The group would also get a ready-made low-cost engineering and supply base.
Goenka said he will “most likely” be travelling to South Korea soon as part of the due diligence process. The deal is expected to be over $500-million. The due diligence is expected to complete in a few weeks.
Mahindra is one among six suitors shortlisted for buying out the South Korean company under a court-led restructuring plan.
The auto major also said it will launch a new sports utility vehicle (SUV) in a year’s time.
“We will be launching the vehicle in the first quarter of FY’12,” Goenka said. The new SUV, which is in the R&D stage, will be “more premium” than the company’s current offering Scorpio, Goenka said.