Indian conglomerate Mahindra & Mahindra has held a 74.65 percent stake in SsangYong since 2011, and the South Korean company has been experiencing financial difficulties over the past few years. Amid the crisis caused by the coronavirus pandemic, Mahindra has taken a course to cut costs, including withholding financial support from SsangYong in the amount of $423 million. At the end of 2020, by decision of the Seoul Bankruptcy Court, SsangYong came under external management.
Hope for salvation appeared only in the fall of 2021 – the startup Edison Motors, which produces electric buses, became interested in buying the brand. At the last moment, the deal fell through due to the fact that the buyer did not fulfill his payment obligations on time, and the contract with him was terminated.
As for KG Group, the chemical group intends to buy SsangYond in two stages, and in the first stage they will buy new shares issued by additional issue in the amount of $260 million. Registration is expected in early July, it still needs approval from creditors.