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Mahindra Holds 70% Stake After the Deal With Ssangyong
After the final deal, Mahindra will launch three Ssangyong models in the domestic market during the next 3-4 years. This, the company feels, pave way for reviving the increased sale of SUV from Ssangyong. M&M will now enjoy the advantage of entering into the segments of Russia, Europe and the Middle East only to be labeled as the global competitor in UV sector. M&M is sound and potent enough to exert a keen competition with its marketing strategy backed by the Ssangyong"s technological efficiency. The President of automotive and farm equipment sectors of M&M said the new front will envisage a combined synergies through new products under Ssangyong platform. A note of appreciation has been released by the SYMC praising the financial stability and solid state of M&M in the auto industry. The company foresees the expansion of R&D, enhanced business prospects and sales increase globally.
The deal included NM Rothschild, the Investment Banking firm acting as the advisor. The fund involved in this deal cannot be taken in the lighter sense as Ssangyong was not for a temporary recovery from its financial crisis. Equally shrewd is M&M which has been on the look out for a strong global player for moving its SUVs. The analyst of Fortune Financials said the deal has made M&M focus on cost reduction and extended hand to the capex schemes. However, both these companies saw the prospect dipping - M&M faced a fall of 0.87% with Rs759.70 and Ssangyong"s has been by 4.5% at 9550 won. The pact involved the representatives from the Ssangyong labor union for job protection. By finalizing the deal M&M has deposited 10% of the final pricing meeting the definitive agreement with the balance to be paid three days before the SYMC"s stakeholders" meeting.
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