M&M signs MoU with Ssangyong

SEOUL, SOUTH KOREA: Mahindra & Mahindra Ltd. (M&M), India’s leading manufacturer of utility vehicles, today signed an MoU with Ssangyong Motor Company (SYMC) to acquire a majority stake in the South Korean SUV maker. This will be followed by a detailed due diligence process and finalization of definitive agreements. SYMC is a significant player in the SUV segment in Korea, having recorded 1.3 million SUV sales from 1990 to 2009. Mahindra, a US $7.1 billion Indian multinational, employs over 1,00,000 people across the globe. Mahindra enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today, is an embodiment of global excellence and enjoys a strong corporate brand image. In November 2006, Mahindra was declared one of the world’s 200 most reputed companies by Forbes.com. The reputation poll, which was conducted by the US based Reputation Institute, ranked the company amongst the Top 200 of the Most Reputed Companies in the World and in the Top 10 list of India’s most reputed companies. Mahindra & Mahindra is also one of only two Indian companies to feature in the Credit Suisse ‘Great Brands of Tomorrow’ list. The study takes an in-depth look at how a company's brand can be one of the few true competitive advantages remaining in modern industry. “Korea is one of the world’s leading centres of automotive excellence and Ssangyong brings with it a rich legacy of R&D and innovation. India is a rapidly growing SUV market and will create new growth avenues for Ssangyong. The synergies between both the brands, which share a similar heritage, will make us a combined force to reckon with in the global UV space,” said Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group. “We are committed to leveraging Ssangyong’s strong competencies in R&D and technology by investing in a new SYMC product portfolio which will help us gain momentum in global markets. Mahindra’s focus on alternative fuels and electric vehicles with the acquisition of REVA, will further strengthen SYMC’s brand value and take it to new geographies,” said Dr. Pawan Goenka, President, Automotive and Farm Sector, Mahindra & Mahindra Ltd. According to the media communication, Mahindra & Mahindra is committed to nurturing the SYMC brand in global markets while preserving its Korean heritage. It is intended that SYMC will continue to function as an independent entity with Korean management. The acquisition will offer financial stability to SYMC while making Mahindra & Mahindra the largest Indian employer in Korea. Rothschild and Samsung Securities are advisors to Mahindra & Mahindra Ltd. on this transaction.