Mahindra & Mahindra, India’s top utility vehicle and tractor maker will start the due diligence on troubled Korean SUV maker Ssangyong Motor, a top official told a TV channel on Thursday.
The due diligence process may take four to six weeks, after which the Indian company will decide about its bid for Ssangyong, Pawan Goenka, president of Mahindra’s automotive sector said. Last week, Ssangyong said it had short-listed six out of seven firms that submitted letters of intent to buy the car maker, under court-led restructuring since early 2009.
Ssangyong declined to disclose the disqualified bidder among the seven, which included Renault SA and India’s top utility vehicle maker Mahindra & Mahindra for a deal worth up to USD 500 million.
French car maker Renault SA had earlier confirmed that it had submitted a letter of intent to buy South Korean SUV maker Ssangyong Motor, together with Japanese partner Nissan and South Korean subsidiary Renault Samsung Motors.
South Korea’s smallest carmaker is 6.2 per cent owned by China’s SAIC Motor Corporation. Barclays Bank Plc and Barclays Capital Securities are Ssangyong’s largest shareholders with a combined stake of 8.02 per cent.