India’s Mahindra & Mahindra Ltd. (M&M), that is currently looking into investment opportunities in post-war Sri Lanka, announced this week that it had acquired a majority stake in the South Korean SUV maker Ssangyong Motor Company (SYMC).
“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 the Vice Chairman and Managing Director of Mahindra Group, Anand Mahindra in a statement.
SYMC is expected to continue to function as an independent entity with Korean management despite the acquisition. The company is a significant player in the SUV segment in Korea, having recorded 1.3 million SUV sales from 1990 to 2009.
“The acquisition will offer financial stability to SYMC while making Mahindra & Mahindra the largest Indian employer in Korea,” said the statement from M&M.
The Indian group is also looking at expanding its business in Sri Lanka.
Earlier this month Mr Anand Mahindra, was in Sri Lanka and met President Mahinda Rajapaksa at Temple Trees on August 17.
Government news stat ements said M&M plans to send a bigger team, representing all 10 sectors of the group's businesses, for talks with the Board of Investment soon.
M&M is a US $7.1 billion Indian multinational, and a market leader in utility vehicles, tractors and information technology, with a growing presence in financial services, tourism, infrastructure development, trade and logistics. |
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