"The board of directors of the company at its meeting held on August 7, 2010, have authorized submission of a binding bid to acquire majority stake in SsangYong Motor Co Ltd, South Korea," the manufacturer said in a filing with the Bombay Stock Exchange, cited by Economic Times.
The details of the bid are currently unknown. Back in May, rumors pointed to the Renault-Nissan alliance being involved in the deal as well, but no confirmation came on that either. With the deadline for submissions expiring today, it's likely more on the subject will surface soon.
As for the reason why Mahindra would go after the South Korean carmaker, key technologies and know how are the main reasons.
“Mahindra has good reason to be interested in buying Ssangyong as this fairly young auto firm can learn auto manufacturing and marketing procedures from Ssangyong...It can also learn key technologies in carmaking," Kevin Lee, analyst at Shinhan Investment Corporation in Seoul talked about Mahindra's reasons to bid for SsangYong.
Meanwhile, SsangYong is getting ready for the Mondial de l'Auto 2010 in Paris this October, where it will be present. Following a year of struggles, the carmaker will be bringing to Europe the Super Rexton and the Korando C, a model based on the C200 concept presented at the same venue in 2008.