Mahindra & Mahindra signs MoU with Ssangyong Motor Company
Mahindra & Mahindra Ltd. signed an MoU with Ssangyong Motor Company for acquisition of majority stake.
- (1888PressRelease) August 24, 2010 - Seoul, South Korea - Strategic acquisition to make Mahindra & SYMC a combined force in the global SUV space
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 Mr. 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.
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.
About The Mahindra Group
Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and 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.
Mahindra is the only Indian company among the top tractor brands in the world. It is today a full-range player with a presence in almost every segment of the automobile industry, from two-wheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA Electric Car Co Ltd. (now called Mahindra REVA), strengthening its position in the Electric Vehicles domain. The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.
Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.
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