Mahindra completes SsangYong acquisition
Mahindra & Mahindra's acquisition of Korean SUV maker SsangYong was concluded on Tuesday.business Updated: Mar 15, 2011 22:34 IST
Mahindra & Mahindra's acquisition of Korean SUV maker SsangYong was concluded on Tuesday.
"We have completed all formalities related to the acquisition of a majority stake in SsangYong Motor Company and that the company is no longer under court receivership," said an M&M statement from Seoul.
Pawan Goenka, president, automotive & farm equipment sectors, Mahindra & Mahindra, said: "Ssangyong will be an independently run Korean company with largely Korean management".
Yoo-il Lee was announced the new CEO of Ssangyong Motor Company (SYMC), while Dilip Sundaram from Mahindra was made the new CFO.
The debt-ridden SsangYong, which was under court administration, was put on sale last year. Mahindra had emerged the preferred bidder in August 2010 and paid R2,200 crore for a majority stake in February 2011.
With formally taking over SsangYong, Mahindra proposed to strengthen its product pipeline, harness the synergies between the two companies and invest in SYMC brand.
SYMC's business plan for 2011 calls for 70% increase over its spending on product development at 200 billion Korean won (about R800 crore) and 60% increase over 40 billion won in brand building (R162 crore) for last year.
Mahindra plans to launch Ssangyong SUVs into the Indian market. Both companies are working on the launch of Rexton and Korando-C SUVs in Indian market this year.
A 'synergy council' comprising of senior members of both Mahindra and Ssangyong has been formed to look into opportunities such as joint product development, global procurement and penetrating international market.
M&M also considers utilising the group's strong IT capabilities for Ssangyong and Mahindra Finance starting operations in Korea to enhance the sales of Ssangyong vehicles.