M&M, Ruia Group submit bids for Ssangyong Motors

Finally three groups including Mahindra and Mahindra and the Ruia group have made bidding offers for buying troubled South Korean car maker Ssangyong Motor Co Ltd, said the sources. The Renault-Nissan group has not submitted a bid for cash-strapped SUV maker, added the sources close to the matter. Renault-Nissan’s decision of not bidding for Ssangyong indicates that the group could look for other options for increasing its production capacity in South Korea. The group will either expand its existing Renault Samsung plant or a greenfield investment. Quoting Samjong KPMG and Macquarie Group Ltd, which are handling the sale, the industry sources said that the Ruia Group and a South Korean company had submitted bids for the maker of the Rexton SUV. A Ssangyong spokesman said that a South Korean court is planning to pick the preferred bidders this week. Earlier on Aug 7, the board meeting of M&M had approved bidding for Ssangyong, allowing Mahindra and Mahindra to buy a majority stake in Ssangyong. For a deal worth up to $500 million, six groups including Renault-Nissan and Mahindra have been reviewing Ssangyong's books. Mahindra and Mahindra is also planning to launch its Scorpio, later this year, in the US market. The company has also been investing in light and heavy trucks, two-wheelers and electric vehicles. Auto experts of South Korea said that Ssangyong may help and support Mahindra to develop technology and will also add to its vehicle line up.