Mahindra & Mahindra (M&M), India’s leading manufacturer of utility vehicles, emerged as the preferred bidder for the acquisition of a majority stake in South Korean SUV maker, Ssangyong Motor Company (SYMC). The preferred bidder status would require it to enter into a Memorandum of Understanding with SYMC, followed by a detailed due diligence process.
SYMC is a Korean manufacturer of auto and aggregates, with 7 models under 5 brands. The 7 models include 2 large sized sedans, 4 SUVs and 1 MPV. It also has a manufacturing plant for petrol and diesel engines as well as axles.
SYMC is a significant player in the SUV segment in Korea, having recorded 1.3 million SUV sales from 1990 to 2009. It has a strong brand and presence in Europe, Russia, South America, the Middle East, Africa and Asia. Established in 1962, SYMC has more than 1,200 dealers globally. It has R&D manpower strength of around 600 people and modern R&D infrastructure for design, testing and validation.
This strategic acquisition, when concluded, would make Mahindra and SYMC together a force to reckon with in the global SUV space. It is intended that SYMC will continue to function as an independent entity with Korean management.