Indian company Mahindra & Mahindra has announced that it intends to buy troubled Korean car-maker Ssangyong by the end of this year. If the transaction goes smoothly, it is expected that Ssangyong, which is principally known in our markets for its SUV’s and its Mercedes-Benz power units, would remain under Korean management. According to information gathered by Reuters, the transaction may involve around 400 million dollars (+/- 315 million EUR), although this has not been confirmed by either party. The debts of Ssangyong are reported to be over 50% in excess of this figure. The transaction would represent a major increase in the positioning of Mahindra & Mahindra in a rapidly growing part of the world in automobile terms, and a new confirmation of the shifting power base amongst global car-makers.

Share