Ssangyong selects M&M as preferred bidder

In a deal that yet strengthens the growth of emerging market automakers, Mahindra and Mahindra has been named as the preferred buyer by the South Korea's troubled Ssangyong Motor.

Ssangyong, the SUV maker, is in bankruptcy protection and is going through its bidding process. The company said that M&M, India's top utility vehicle maker, had been selected after it made the highest bid. However, Ssangong Motor did not disclose the offer price.

Last week the sources were quoted saying that to become a major global utility vehicle maker,Mahindra is likely to pay up to $400 million for acquiring a majority stake in Ssangyong.

Auto experts say that Mahindra and Mahindra will get a good support through this deal as it will get quick and easy access to global market. The reason behind is that the Korean maker of the Rexton and Kyron SUVs and the Chairman luxury sedan also exports to regions like Russia, Europe, China, and the Middle East.

Ahn Soo-woong, an analyst at LIG Securities, said that the biggest attraction for Mahindra would be Ssangyong as it will help M&M to set its global footprint.