Indian industrial giant Mahindra has signed "a definitive agreement" with the receivers of SsangYong Motor to take over the troubled South Korean company.
Mahindra signs for SsangYong
SsangYong has been undergoing corporate rehabilitation since February, 2009.
The total cost of acquisition is $463-million, $378-million in new stock and $85-million in corporate bonds, the two companies announced.
Pawan Goenka, head of Mahindra's automotive section, said: "The coming together of Mahindra and SsangYong will result in a competitive global utility vehicle player."
NEW PRODUCT PORTFOLIO
He said both sides would gain, Mahindra bringing competence in sourcing, marketing and financial capability and SsangYong technological advantages.
Mahindra was committed "to leverage the combined synergies" by investing in a new SsangYong product portfolio for global markets.
"There is also an opportunity to introduce a premium portfolio of SUVs in the Indian market, providing a new growth avenue for SsangYong and further strengthening our dominant position in the UV area," he added.
The acquisition will offer financial stability to SsangYong and the two companies will work to further strengthen SsangYong's product portfolio across the globe, the statement said.