Mahindra & Mahindra on Friday said it has been shortlisted to make the final bid for acquiring troubled South Korean auto maker SsangYong Motor.
Mr Pawan Kumar, of the Ruia Group, the owner of tyre firm Dunlop, has also received approval from the bankrupt auto firm to submit its bid.
SsangYong Motors has reportedly picked up six parties, including Mahindra & Mahindra (M&M), Ruia Group and a Nissan-led consortium, to carry out the due diligence.
“We have been asked to submit the final bid. The process has been handled by the court,” M&M president (automotive and farm equipment) Mr Pawan Goenka, said.
He, however, declined to give any details about when the company would submit its bid and what could be the bid amount.
When contacted, a Ruia Group spokesperson said: “We have received a confirmation from the company (SsangYong Motor) for being selected and we are going for the next round.”
Last week, seven companies had expressed interest in SsangYong Motor (SM) and entered the initial stage to acquire the firm, which has been undergoing a court-led restructuring since 2009 after suffering heavily due to the downturn in the auto industry. The company has been estimated to be worth up to $500 million.
Sources had earlier said M&M and the Ruia Group will have to slug it out with other rivals, including South Korea’s third largest carmaker Renault Samsung Motors (RSM), and the deal value can run up to $600-800 million.
M&M is interested in the South Korean firm as the homegrown utility vehicle major can gain technological benefits from the range of SUVs that SM has at its disposal. — pti