*Mahindra & Mahindra Ltd* may acquire South Korea's cash strapped *Ssangyong Motor Co*.
This move comes just days after, M&M announced the buyout of Renault’s 49% stake in the joint venture — Mahindra Renault Pvt. Ltd. Mahindra was linked with Ssangyong in 2004 as well, when it expressed interest in bringing Ssangyong SUVs to Indian through a tie-up but that never happened. Transaction Note Ssangyong had filed for bankruptcy protection in Jan'09 after being hit by slumping sales during the financial crises. Ssangyong is owned 51% by *SAIC Motors* of China and has factories in South Korea, employing 7,100 workers. SAIC had acquired a majority stake in Ssangyong in 2004 for $500 Mn. Ssangyong didnot get a bail out package due to a dispute between the South Korean and Chinese Government. Korea Development Bank - Ssangyong's main creditor insisted that SAIC as the majority shareholder take the lead in providing cash relief before seeking help in South Korea, while the Chinese government complained that Ssangyong operates in Korea and employs South Korean workers and hence should be bailed out by South Korea. Earlier this month, Ssangyong announced that its auto sales for March have doubled as compared to a year ago. It sold 5,724 cars in March'10 as compared with 2,485 unites for the same period last year. Ssangyong was the first major auto company to file for bankruptcy protection. Manufacturers around the world have suffered greatly from shrinking demand, but some have received enormous government support. American automakers, notably General Motors and Chrysler, have also received a large amount of emergency bailout funds from the U.S. government. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
