Seoul: India’s Mahindra & Mahindra Ltd said on Wednesday that it expects to sign a final agreement to buy South Korea’s money-losing Ssangyong Motor Co Ltd by December as it starts pricing negotiations.
“We completed due diligence on Ssangyong Motor and we are generally satisfied about the overall outcome,” Mahindra vice-chairman Anand Mahindra told a news conference in Seoul. “We are hoping that by the end of this year we will be able to complete a definitive agreement and we hope the entire process will be completed in February or March.”
Ssangyong said on Tuesday that negotiations over a final acquisition price would start this week as working-level officials of Mahindra visited the company along with vice-chairman Mahindra.
The purchase would help the Indian domestic automaker gain an international foothold as the Korean maker of Rexton and Kyron SUVs and the chairman luxury sedan also exports to China, Russia, Europe and the Middle East.
Shares in Ssangyong, which have plunged 70% this year on concern over the debt-ridden company’s viability, closed up 0.44% on Wednesday versus a 0.43% fall in the broader market.