M&M seals Ssangyong deal for $463m

Utility vehicle major Mahindra & Mahindra (M&M) moved closer to acquire Korean SUV maker Ssangyong and signed a definitive agreement to buy the company for $463 million (around Rs 2,100 crore). The acquisition is likely to be wrapped up by February-March on approval of a revised corporate rehabilitation plan from creditors in January. Ssangyong has been under restructuring since February 2009 when global recession hit car sales. However, M&M is optimistic on the deal and has said the deal would drive in “immediate synergies” and help fulfil its ambition of becoming a global player in SUVs. M&M said it will buy 70% in Ssangyong by issuing new shares worth $378 million while purchasing $85 million of Ssangyong’s bonds.