M&M to retain top management at Ssangyong

The takeover of ailing South Korean auto maker Ssanyong by India’s blue eyed boy Mahindra and Mahindra in a $465 million deal has entered in to its penultimate phase with a majority of the biggest creditors accepting a little trim. The trim is referred to a small percentage that is deducted from the value at par of assets used as collateral. The size of the trim generally showcases the risk perceived which is associated with holding big assets.

Early February is the tentative time frame given by a top Mahindra and Mahindra official to complete the final process. The formalities will then take an additional couple of months. The major announcement amidst this, Mahindra and Mahindra has announced that it intends to retain a large chunk of the top management which will be hereby 70% owned by the Indian tractor and utility maker. Ssangyong is also listed on the Korean stock market and there are no speculations about its delisting.

Mahindra and Mahindra in its initial stages after taking over the reigns will allow the Korean unit to operate as an independent entity which will only be helped by the parent company in the case of fund rising and product development.

Pawan Goenka, Mahindra and Mahindra’s president of the farm equipment and automotive division, in an interview with the daily Times of India, was quoted as saying, that the company is expected to wind up this entire process as soon as early February with an additional 2 months needed to finish off the remaining formalities.

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