Mahindra has been chosen as the preferred bidder for Ssangyong Motors, and the two companies are set to sign a Memorandum of Understanding by the end of August 2010 before a due diligence process starts the following month. Mahindra will also be paying a 5% deposit for its bidding price this month.
There’s no official word on how much Mahindra’s bid is. Whatever the amount is, taking over Ssangyong isn’t going to be cheap, and then there is also the question of the huge amount of debt the South Korean SUV maker has. Renault-Nissan pulled out due to high costs, and Mahindra was picked over Indian tyre maker Ruia Group and South Korean company Young An Hat Co Ltd, the owner of Daewoo Bus.