An alliance of Renault, Nissan, and Renault Samsung that had been considered one of the likeliest candidates to take over Ssangyong Motor pulled out of the final bid that closed Tuesday.
Remaining hopefuls to buy the ailing automaker are India's Mahindra and Mahindra and Ruia Group, and Korea's YoungAn Hat, which owns a controlling stake in Daewoo Bus. Seoul Invest, a private equity fund, also gave up.
Creditors will announce the preferred bidder by Friday.
The Renault-Nissan alliance said it hoped to double its annual production capacity in Korea by acquiring Ssangyong but apparently dropped out for two reasons -- the price and the automaker's hardline union. Ssangyong's debt stands at a whopping W850 billion (US$1=W1,167), and it would be difficult to expect full cooperation from the belligerent union.
Industry watchers now see Mahindra as the most likeliest candidate based on its financial leeway and determination. India's top SUV maker sent to Korea a group of over 20 executives including president Pawan Goenka to examine Ssangyong facilities. It has also reportedly allocated W500 billion (US$1=W1,167) for the deal.
The chairman of Ruia Group, which owns Dunlop India and Falcon Tyres, also visited Korea late last month and met with Ssangyong executives. But some doubt the parts maker has sufficient financing.
As Ssangyong is estimated to cost a hefty W1.2 trillion, there are fears that the first round of bidding will not result in a deal.
