Seoul: Indian carmaker Mahindra and Mahindra on Tuesday signed a "definitive agreement" with receivers of Ssangyong Motor to take over the troubled South Korean auto maker, the two sides said.
The total cost of acquisition is 463 million dollars, comprising 378 million dollars in new stock and 85 million dollars in corporate bonds, Mahindra and Mahindra and Ssangyong Motor said in a press statement.
"The coming together of Mahindra and Ssangyong will result in a competitive global UV (utility vehicle) player," said Pawan Goenka, head of Mahindra's automotive section.
He said both sides would gain from the tie-up, with Mahindra bringing competence in sourcing and marketing as well as its financial capability and Ssangyong providing technological advantages.
Mahindra is committed to "leverage the combined synergies" by investing in a new Ssangyong product portfolio to gain momentum in global markets, said Goenka.
"There is also an opportunity to introduce a premium portfolio of SUVs in the Indian market, providing a new growth avenue for Ssangyong and further strengthen our dominant position in the UV" area, he added.
Ssangyong has been undergoing a corporate rehabilitation process since February 2009.
The acquisition will offer financial stability to Ssangyong and the two companies will work to further strengthen Ssangyong's product portfolio across the globe, the statement said.
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