Takeover of SsangYong Motor by consortium collapses

SEOUL: Troubled South Korean off-roader SsangYong Motor has voided the agreement for its takeover by a domestic consortium led by electric truck maker Edison Motors.

The consortium had let the deadline for paying the full takeover price pass, SsangYong said in a stock exchange release on Monday.

The takeover agreement was thereby "automatically" suspended.

The consortium wanted to take over SsangYong Motor for 304.86 billion won (RM1bil).

Both sides had signed the contract in January. The takeover had been approved by an insolvency court.

Edison, which produces e-trucks and e-buses, had paid 10%. The balance was supposed to be received by last Friday, according to SsangYong, but Edison Motors had problems raising the necessary funds for the takeover, according to reports by South Korean news agency Yonhap.

SsangYong said it would now try to find a new buyer and submit a new restructuring plan to the bankruptcy court.

SsangYong is South Korea's fourth largest carmaker. Since 2011, it has been majority-owned by Indian commercial vehicle maker Mahindra & Mahindra.

The Indians have been attempting to sell their majority stake since 2020.

SsangYong's 2021 sales fell 21% year-on-year to just under 84,500 cars, according to its own figures.