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In the world of business, mergers and acquisitions play an important role to make the company a stronger force to reckon with in the future.

When an organization starts a business, it takes various things to reach where it wanted to be and be in the pink of health (business). But when a company takes over another, it does not have to do much. The previous company already has a product line and the company that acquires it just has to manage it, thereby making profits in the end.

In the same context, Mahindra & Mahindra, one of the auto majors of the Indian automobile market has recently finished the formality and acquired a company called Ssang Yong Motor Company.

Mahindra & Mahindra recently made an announcement that it has finished all the formalities pertaining to the acquisition of a majority of stake in Ssang Yong Motor Company. The announcement made by the company clearly means that it’s no longer in court receivership. Mahindra & Mahindra can now officially chalk out its plans to visualize the way ahead.

One of the major benefits that Mahindra would be getting from this deal would be to increase the level of synergies between the two companies, while protecting their respective brand identities and ensuring quality.

Council comprising members of both the companies would be formed soon whose job would be to work on different types of strategies that would enhance the synergy level between them. As a result, the council would focus on important aspects such as global procurement, new product development and not to forget working on business strategies for penetrating key international markets.

Mahindra has also started working on plans that includes launching the Rexton and Korando-C in India. Also under consideration are the plans to produce joint product and technology development and synergy in global purchase and operations.

Providing you an insight, Mahindra has a strong IT system which is being reviewed for suitability of Ssang Yong Motors. After the deal has been locked in, Mahindra is also considering opening a finance system to enhance operations in Korea where Ssang has got a very good presence. This will also help Ssang Yong vehicles to increase its sales.

Mahindra & Mahindra has also proposed a five-point agenda for Ssang Yong and these are strengthening the product line, harnessing synergies between the two companies, investing in the SYMC brand, focusing on financial stability and building human resources.

Mahindra was extremely conscious of SYMC’s Korean heritage and would only want to enhance it. Ssang Yong will be an independently run Korean company – with largely Korean Management – and will remain a ‘Made in Korea’ Brand.

Dr. Pawan Goenka, President, Automotive and Farm Equipment Sector, Mahindra & Mahindra, was quipped as saying.

This is a landmark day for all of us at Mahindra as it marks the beginning of what I am sure will be an enduring partnership with Ssang Yong Motor Company. I would like to thank all the employees of Ssang Yong as well as the company’s creditors for the help and cooperation extended to us during this long process

Dr. Pawan Goenka was further stated as saying on the deal.

It seems like it’s a good deal for M & M and it may take them to a new level of excellence.

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