India’s Mahindra & Mahindra has been named the preferred bidder for Korean automaker Ssangyong. The purchase of Ssangyong would give Mahindra, India’s leading truck and SUV manufacturer, access to “emerging and growing markets,” including Russia.
According to reports out of South Korea, Mahindra will agree to purchase Ssangyong by month’s end, with the deal expected to be signed by November. Mahindra’s bid for Ssangyong was not revealed, but the deal could be valued at $370 million.
Ssangyong, formerly under the control of China’s SAIC, has been operating under bankruptcy protection for over a year.
Mahindra is reportedly interested in acquiring Ssangyong for its SUV and small car technology, as well as the Korean automaker’s presence in other global markets, including Russia. Ssangyong, which has tallied 44,000 vehicle sales so far this year, has 1,300 dealers outside of South Korea.
In addition to purchasing Ssangyong, Mahindra also plans to enter the U.S. market later this year. However, much doubt surrounds Mahindra’s U.S. plans as the India truck maker has missed several deadlines, including its original late-2008 on-sale date.
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1.’Mahindra Named…’ view
