Mahindra & Mahindra board approves SsangYong bid

The auto major Mahindra & Mahindra has finally decided on the bidding to acquire South Korea's SsangYong Motor. The bidding was approved by M&M board meeting which was held on Saturday, Aug 7. The company was quoted saying that the board of directors of the company have authorised submission of a binding bid to acquire majority stake in SsangYong Motor Co Ltd, South Korea. However, the company did not elaborate on the details.

Earlier, the decision related to the bidding of acquiring Ssang Yong Motor had been postponed twice in July because M&M wanted to gather more information on this issue.

The deadline for submission of bids was extended to August 10 from July 20 by SsangYong Motor. SM is mainly into manufacturing of sports utility vehicles and recreational vehicles. The SUV models of SM include 'Rexton', 'Kyron' and 'Actyon' and sedan 'Chairman'. SsangYong Motor is a Seoul-based firm which has been going through a court-led restructuring since 2009.

Six bidders had been shortlisted by SM which include Mahindra & Mahindra , P K Ruia-led Ruia Group and a Nissan-led consortium. The P K Ruia group, another bidder for SM, has stated that it would be taking a final decision in the coming two days. Industry experts had opined that M&M can have technological benefits from the range of SUVs of SM. That is why M&M is interested in the bidding of Ssang Yong Motor Co.