Days after we brought you the news of Mahindra mulling a bid for Ssangyong, the news is now almost official.
Putting paid to all speculations and rumors, Mahindra will indeed join the bidding process for ailing South Korean car maker, Ssangyong Motor. Ssangyong Motor which has been under bankruptcy protection since 2009 was take over by Chinese Automaker SAIC, which once owned as much as a 51% stake in Ssangyong.
However, SAIC failed to turn Ssangyong around and since then it has been gradually selling it’s stake to get rid of the bitter aftertaste of a deal gone bad. SAIC’s stake in Ssangyong Motor now has come down to 10%. Here’s what a senior unnamed source at Mahindra reportedly told Economic Times, a leading Indian business news paper.
“We are very serious…We could put in a bid shortly”
While Mahindra &Mahindra haven’t yet officially confirmed their participation in the bidding process, the bid could range anywhere from $100 to $ 300 Million. Along with Mahindra and Mahindra, two other south Korean firms, SM Aluminum and Seoul Investments are in the race for Ssangyong.
Watch this space for more buzz on the Ssangyong bid by Mahindra.