Auto major Mahindra & Mahindra said on Thursday that the deal between South Korean subsidiary SsangYong Motor (SYMC) and a consortium led by Edison Motors Co, in which the latter bought the former, has been terminated.
In a regulatory filing with the BSE, Mahindra & Mahindra said it was informed by the receiver of SYMC that the agreement between the consortium and SYMC has been terminated by SsangYong, after consultation with the Seoul Bankruptcy Court.
“Based on our investigation, the receiver of SYMC today informed us that the aforementioned agreement between the consortium led by Edison Motors Co and SYMC to acquire debt-ridden SYMC through SYMC’s primary stock was terminated by Ssangyong, after consultation with the Bankruptcy Court. of Seoul, due to Edison’s failure to set the offer amount in accordance with the terms of the offer agreement. investment,” said Mahindra & Mahindra.
“We are also informed that the Edison Union has appealed the termination of the contract,” he added.
In January 2022, it was announced that SsangYong Motor will be acquired by a consortium led by Edison Motors.
By 2010, Mahindra & Mahindra had acquired approximately 75% stake in the business in an effort to revive it. After a decade, in 2020, he decided not to invest anymore and then thought of selling his share.
However, it was unable to find a buyer, causing the South Korean automaker to go bankrupt in 2021.
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