AutoBeta(AutoBeta.net)12/27 Report--

Following media reports in October that new car-making company Edison Motors will buy Ssangyong Motor for about 223 million euros, there are media reports today that Edison Motors and Ssangyong Motor will complete the merger as soon as possible this week. This is also the third time that Ssangyong Motor has been acquired by SAIC of China and Mahindra of India, but Ssangyong Motor is still filing for bankruptcy protection because of loan arrears.

South Korean legal and auto industry expect the acquisition to be completed by this week or January 7 at the latest, media said. Another Edison Motors executive pointed out: "We need to adjust the content of the contract, but if the discussion goes well, the acquisition can be completed within this month." If the time for adjusting the contract is extended, the acquisition may not be completed until early January next year. "

In October, it was reported that Edison Motors would buy Ssangyong for about 223 million euros and a final agreement would be signed at the end of November, but the agreement was not signed as scheduled.

According to public data, Edison Motors, founded in 2015, is a South Korean electric car manufacturer that mainly produces electric commercial vehicles, including buses and trucks. Its goal is to make a profit in the next three to five years, and to increase annual production to 300000 vehicles, including 150000 electric vehicles and 50, 000 hybrid vehicles. Earlier, senior executives of the company said they would plan to launch models such as Smart S, Smart E and SmartA in the future. Mainly to the standard Mercedes-Benz EQs, Tesla Model S and other models.

Ssangyong Motors, founded in 1954, is a well-known car manufacturer in South Korea, mainly manufacturing four-wheel drive cars, as well as large passenger cars, special vehicles, automobile engines and spare parts. Its main models are SUV, including TiVera, Corlando, Ludi and other models. In 2001, Ssangyong entered the Chinese market and became one of the first overseas brands to enter the Chinese market, but its poor performance in the Chinese market ended in failure. SAIC bought a 49% stake in Ssangyong Motor for $500m in 2004. Due to poor management and the economic crisis in 2008, Ssangyong filed for bankruptcy protection in 2009. In 2011, Ssangyong parted ways with SAIC. In March of the same year, Ssangyong was acquired by Indian auto giant Mahindra&Mahindra (Ma Hengda) for 523 billion won (about 3.024 billion yuan). To become the largest shareholder of the company. Due to the good market for Tivoli models, Ssangyong made a net profit of 58 billion won in 2016.

Since then, Ssangyong has been in a state of losses. relevant data show that in the four years from 2017 to 2020, Ssangyong lost 66 billion won, 62 billion won, 341 billion won and 215.8 billion won respectively. In view of Ssangyong's losses for 15 consecutive quarters, Ma Hengda is also unwilling to inject new investment into Ssangyong and said to find a suitable buyer for Ssangyong. There was news that Geely and BYD were interested in buying Ssangyong, but the news was quickly rejected by Geely and BYD. In the context of this operating crisis, Ssangyong Motor filed for bankruptcy reorganization again at the end of 2020, and on October 25 this year, Edison Motors proposed to buy Ssangyong Motor for about 223 million euros, reportedly because Edison Motors intends to enter the passenger car market and can mass produce electric cars at Ssangyong's factory in Pyeongtaek, South Korea.

It is worth noting that on December 22, South Korea's Ssangyong Motor announced the signing of a cooperation agreement with domestic first-tier independent car brand BYD Automobile, in which the two sides will jointly develop key components and production battery packs for batteries and be used in Ssangyong's first electric vehicle, the U100, which will be mass-produced in 2023.

So far, there has been no clear response from the authorities on the exact timing of the merger agreement between Edison Motors and Ssangyong Motor.

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