Mahindra plans to take the control of the Ssangyong by March

Mahindra & Mahindra the Indian utility manufacturer is all set to purchase 70 per cent stake in the ailing South Korean auto company Ssangyong Motors. The deal is accelerating towards closure. The Indian auto mobile company who purchased Ssangyong for $468.4 million said that M&M is anticipating to acquire the full management control in Ssangyong Motor Company (SMC) by March. It is being learnt that Korean SUV maker will launch two SUVs from SMC in the domestic auto market in the later part of the year.

Pawan Goenka, President- Auto and Farm Sectors, M&M, said that by 7th February, the company will be making the rest of the 90 per cent of the payment for the take over. He said that after the acquisition, fresh stake will be given to Mahindra & Mahindra and the Indian utility maker will hold 70 per cent share in SMC.

As per the report, Mahindra India will be greatly benefit from the deal as its SUVs will be powered with advanced technologies and also it will help in greatly cementing its position in the Southeast Asian auto markets and from there on it can fly its international entrepreneurial ambition. Though speculation have been made over the progress of the Korean auto giant due to court led restriction from February 2009 due to global recession which affected the auto mobiles sales, Mr Goneka is sure it will perform well. The Korean auto company for 2010 crossed its sales when compared with 2009 sales figures of 35,300 unit.

He also said that M&M believes that court will fully withdraw it by the end of March. From there on, the Indian auto company will take the management charge. The new Ssangyong board will be declared in two weeks which will be headed by a Korean honcho and will be operating independently. He stated that in this deal one of the company will lose its identity but will work in amity.

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