M&M shows interest in Saab’s acquisition

31 Dec 2011

Mahindra & Mahindra (M&M), a part of the $14.4 billion Mahindra Group has shown interest in acquiring at least a part of bankrupt Swedish carmaker Saab Automobile. In this regard, the company is in the process of setting up meetings with two court-appointed administrators who are overseeing Saab’s bankruptcy to possibly buy a part of the carmaker or the whole company.

M&M has aggressively got into a series of acquisitions in the past couple of years, including acquisition of SUV maker Ssangyong for $368 million and majority stake buy in electric car marker Reva. It also bought back its stake from Renault for Logan joint venture. The company has also successfully managed to turn around Logan sales.

Earlier, Saab Auto filed for bankruptcy after running out of cash. The company had to halt production in March, as it was unable to pay its suppliers. Poor cash-flow and diminishing scale led to a $263 million loss in the first half of 2011.

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