Mahindra & Mahindra has said that it hoped to conclude an agreement with investor for SsangYong next week. The company has also said that it is optimistic that a buyer would come on board.
Mahindra & Mahindra has said that there are about two months left to conclude the deal. The announcement comes as Mahindra's plans for becoming a global SUV maker hit a rocky patch with SsangYong filing for bankruptcy.
Mahindra & Mahindra to hike prices of its tractors from January
“SsangYong will go into receivership if we don’t fail to conclude the deal,” the company said in a statement. The South Korean automaker filed for receivership in the Seoul Court on December 22.
Currently, Mahindra owns 75 percent equity stake in SsangYong. Going forward, the company will cease to be a major stakeholder by the end FY20-21.
Ford, Mahindra call off auto joint venture
In other news, Ford and Mahindra have also decided to terminate their business transfer agreement. The companies have agreed that the decision was prudent considering the present situation.
Ford, however, has clarified that independent operations in India will continue and the company is not looking to exit the country entirely.
All of this comes in the time when Mahindra & Mahindra is facing stiff competition especially from the likes of the new entrants like Kia with their Sonet and Seltos SUVs as well as MG with Hector and ZS electric SUV.
Shares of Mahindra & Mahindra, however, jumped almost 3 percent post announcement of the December auto sales numbers.