Mahindra readies bid for Saab

Mahindra & Mahindra (M&M), which is among the four companies to show interest in Swedish automaker Saab, has signed a confidentiality agreement with the bankrupt company and is in the process of finalizing its bid.

The Mahindra and its M&A team will meet to take a final call on the structure of the bid. The company has roped in Kotak-Mahindra to finance the deal.

One of the glitches which the new company may have to face is acquiring its technology, which the former owner General Motors (GM) has refused to part with. Sources said GM has made it clear that it will not give intellectual property rights (IPRs) to any buyer for the 9-4 x and 9-5 models.

Mahindra had earlier made a bid for Jaguar Land Rover which was won by Tata Motors. Later in 2011 Mahindra acquired a majority stake in South Korean car maker Ssyangyong.

The acquisitions will help Mahindra to increase its footfall in European and other car markets.