SsangYong Motor, the beleaguered South Korean SUV specialist said a deal for its acquisition had fallen through after potential buyer, Edison Motors, had failed to pay the balance of 274.3 billion Korean won (USD 224 million).
Last January, the two companies signed an agreement in which a consortium led by electric bus maker would acquire a controlling stake in SsangYong, which is majority owned by the Indian conglomerate Mahindra & Mahindra.
However, Edison did not meet a March 25 payment deadline, and the contract was canceled, Ssangyong said. SsangYong says it would now seek a new buyer.
Edison had paid about 10 percent of the purchase price at signing.
SsangYong, which sells the Rexton, Korando, and Tivoli has been under court receivership since April 2021 after Mahindra failed to secure a buyer. The Indian company acquired a 75 percent interest in Ssangyong in 2010.
SsangYong’s global sales last year fell to 84,496, down about 21 percent from a year earlier, the automaker said.
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