Mahindra & Mahindra Ltd. and Ssangyong Motor Co. say they have signed an agreement for the Indian company to acquire the South Korean automaker for $463 million in new shares and debt.
The two companies announced the deal Tuesday after India's Mahindra & Mahindra was named the preferred bidder for Ssangyong in August.
They said in a statement that sport-utility vehicle maker Mahindra will take a 70 percent stake in Ssangyong. The companies said they expect the deal to be completed in March 2011.
SUV-maker Ssangyong went into court-approved bankruptcy protection early last year amid falling sales and mounting red ink. It was majority-owned by SAIC Motor Corp. until the Chinese company lost management control during the bankruptcy process.