M&M signs deal to buy majority stake in Ssangyong

India’s Mahindra & Mahindra (M&M) has agreed to buy a controlling stake in the cash-strapped Ssangyong Motor for 522.5 billion won (US$463 million). Both automakers confirmed the deal. South Korea’s Ssangyong named M&M the preferred bidder, among the various bidders for the stake, in August. Under the deal signed by Pawan Goenka, global automotive president of M&M and Lee Yoo-il, co-manager of Ssangyong, M&M will buy US$378 million in new stocks to be issued by Ssangyong and US$85 million in corporate bonds for a 70% stake. The deal is expected to be completed in March 2011. M&M will operate Ssangyong as a separate entity and retain the top management of the South Korean automaker. (November 23, 2010)