India’s Mahindra will buy troubled Korean carmaker Ssangyong for $463 million, with Mahindra gaining a 70% stake in the company. The deal is expected to conclude in March, 2011.
“Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy while Ssangyong has strong capabilities in technology,” Mahindra President Pawan Goenka said in the statement. “We are committed to leveraging the combined synergies by investing in a new Ssangyong product portfolio to gain momentum in global markets.”
Ssangyong, a maker of SUVs, trucks and minivans, faced a sales crunch when those segments fell out of favor with consumers during the economic crisis. Ssangyong’s most recent products, namely the Rodius, have been pilloried in the press for their bizarre designs, which some have labeled as the world’s ugliest cars.
[Source: Wall Street Journal]