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M&M to Sign Final Agreement with Ssangyong by Dec-Jan

By Motortrend India Staff   |   10 October,2010

Auto major Mahindra & Mahindra (M&M) said due diligence on South Korean sports utility vehicle-maker Ssangyong Motor Company is almost over and work on a draft agreement will begin by the month-end.

“We will be completing our due diligence soon and then hold talks with the management of Ssangyong. We expect to draft our acquisition plan by end-this month,” Mahindra & Mahindra President-Automotive and Farm Equipment, Pawan Goenka, said here.

“We expect to sign the final agreement by December-January,” Goenka said.

M&M is interacting with Ssangyong’s management on the kind of products to introduce in India, “but discussions are still at arms length,” the M&M official said.

Mahindra is also mulling the launch of some Ssangyong products in the US, but no dates have been frozen as yet, he said. According to Goenka, the first-and-second-quarter financial results of Ssangyong have exceeded the company’s expectations.

Betting big on the sales of its Logan sedan this month, Goenka said, “We are very happy with Logan sales in September. We expect to do better in October.”

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