Automobile major Mahindra & Mahindra said that the agreement between its South Korea-based SsangYong Motor (SYMC) and a consortium led by Edison Motors Co, where the latter was to acquire the former, has been terminated.
In a regulatory filing with the BSE, Mahindra & Mahindra said that it has been 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 enquiry, the receiver of SYMC informed us today that the agreement as mentioned above 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.
"We are also informed that the Edison Consortium has appealed against the termination of the agreement," it added.
In January 2022, it was announced that SsangYong Motor will be acquired by a consortium led by Edison Motors.
In 2010, Mahindra & Mahindra had acquired around 75 per cent stake in the company with an aim to revive it. After a decade, in 2020, it decided not to invest anymore and subsequently considered selling its stake.
However, it could not find any buyer, which led the South Korean carmaker to file for bankruptcy in 2021.