Utility vehicle major Mahindra & Mahindra will sign a definitive agreement with Korean automotive brand Ssangyong next month, and complete the buy-out process of the ailing company by March. Mahindra has already paid 5 per cent of the acquisition cost to Ssangyong as a fee that also acts as a deposit fee.
Ssanyong, presently owes $600 million to its creditors. Proceeds from the buy-out will directly go to a court-appointed receiver which will be redirected to the creditors of Ssangyong. Although there has been no official conformation, but according to news reports creditors will bear a cut in their asking price.
Meanwhile, South Korea’s anti-trust watchdog Korean Fair Trade Commission said that it has given the nod to Ssangyong’s sale to the Indian company. The commission stated that the deal would enhance competition in the domestic market and increase Ssangyong’s exports.
crackcrackCompany Name | CMP |
---|---|
Maruti Suzuki | 12472.75 |
Mahindra & Mahindra | 2636.15 |
Mercury Metals | 70.99 |
Hindustan Motors | 35.00 |
Suzuki (India) | |
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