Mahindra, Ruia submit bids for Ssangyong
Three groups including Mahindra & Mahindra Ltd have made binding offers to buy troubled South Korean car maker Ssangyong Motor Co Ltd, Yonhap news agency reported on Tuesday.autos Updated: Aug 10, 2010 21:29 IST
Three groups including Mahindra & Mahindra Ltd have made binding offers to buy troubled South Korean car maker Ssangyong Motor Co Ltd, Yonhap news agency reported on Tuesday.
Ruia Group and a South Korean company had also submitted bids for the maker of the Rexton SUV, Yonhap reported, quoting Samjong KPMG and Macquarie Group Ltd, which are handling the sale. Ruia controls tyremakers Dunlop Ltd and Falcon Tyres.
Officials from Samjung, Macquarie and Ssangyong declined to comment on the report, while officials from Mahindra and Ruia were not available.
Renault-Nissan, however, did not submit a bid for the cash-strapped sport utility vehicle maker, a spokesman said, confirming earlier information from sources close to the matter.
The decision by Renault-Nissan not to bid for Ssangyong suggests the alliance would look for another way to increase production capacity in South Korea, either through expansion of its existing Renault Samsung plant or a greenfield investment. “We will review other options for our capacity requirements in South Korea,” the spokesman said.
A South Korean court planned to pick preferred bidders for the company this week, a Ssangyong spokesman said.
On August 7, Mahindra said its board of directors had approved the submission of a binding bid to buy a majority stake in Ssangyong as it seeks to become a major global utility vehicle maker.
Sources said the company was willing to pay up to $400 million to acquire Ssangyong.
Ssangyong, which has been under court-led restructuring since early 2009, has debts of about $637.9 million.