M&M announces termination of deal to sell SsangYong Motor

The reason for the termination of the agreement is cited to be the inability of Edison Motors to pay a certain amount. 

On Thursday, April 7, the car manufacturer Mahindra & Mahindra announced the termination of the deal to sell its SsangYong Motor Co Ltd to EV manufacturer Edison Motors Co.

SsangYong Motor is debt-ridden & is under court receivership. M&M owns the majority stake in the company. The reason for the termination of the agreement is cited to be the inability of Edison Motors to pay a certain amount.

“Based on our enquiry, the receiver of SsangYong Motor had informed us today that the agreement between a consortium led by Edison Motors Co and SYMC to acquire the debt-ridden SYMC through a primary equity investment in SYMC has been terminated by Ssangyong, after consultation with the Seoul Bankruptcy Court, due to Edison’s inability to deposit the bid amount as per the terms of the investment agreement,” Mahindra & Mahindra said in a regulatory filing.

M&M owns about 75% stake in SsangYong Motor & has been on a mission to find a buyer for its entire stake. In January, Edison Motors had agreed to buy the debt-ridden company for Rs 1,882 crore.

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