Revving up

Mumbai, Aug. 7: Mahindra & Mahindra (M&M) has decided to bid for troubled Korean auto maker SsangYong Motor.

The M&M board today gave its approval to submit a binding bid to acquire a majority stake in SsangYong. The company did not give the details.

M&M is among the six suitors shortlisted for buying out the bankrupt auto company. The five other firms are the Ruia group, South Korea’s private equity fund Seoul Invest, Daewoo Bus and Renault-Nissan. The last date for submitting the bids is August 10.

On Thursday, the Ruia group said it would take a decision over the next three days. “We are yet to take a decision on whether to bid for SsangYong or not. We are evaluating. We will decide in the next three days,” Pawan K. Ruia, chairman of the Ruia group, told newspersons.

Though M&M has not disclosed how much it will pay for the Korean company, reports say it could offer up to $400 million. M&M is keen on SsangYong to boost its international presence.

If the acquisition is successful, SsangYong’s sports utility vehicles such as Rexton and premium sedan Chairman will be added to M&M’s portfolio.

It is believed that M&M will fund the buyout through a combination of internal accruals and debt.