Mahindra & Mahindra, India’s biggest sport-utility carmaker, will start conducting due diligence on Ssangyong Motor within 2 days, as the company plans to expand abroad. A bid will be decided on the inspection’s observations into Ssangyong, Mahindra & Mahindrapresident Pawan Goenka said.
Pyeongtaek, South Korea-based Ssangyong, which went into bankruptcy protection in February 2009, is giving buyers access to Asian and Russian markets, sale advisers Samjong KPMG Advisory and Macquarie Group said in a report sent to investors. On May 28, Ssangyong said that 7 parties showed interest in a majority stake, to be valued at least 700 billion won ($573 million).
Ssangyong might be a “good fit” for Mahindra as the South Korean company will offer access to new markets, Mr Goenka said. Mahindra shares closed at Rs 612.75, an increase of 1.38% on BSE. The shares have gone up 12% this year as against a 1.7% fall in the benchmark Sensex index.