India Inc India Inc: Tuesday, 03 January 2012 11:46

Mahindra & Mahindra may come to Saab rescue

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MahindraIndia’s auto giant, Mahindra & Mahindra (M&M), is weighing up the option of buying parts of bankrupt Swedish car manufacturer Saab Automobile.

While there is no official confirmation from the company, reports indicate that M&M has approached the court-appointed administrators of Saab for initial talks.

Saab had filed for bankruptcy back in December after it ran out of cash. Some Turkish companies are also believed to be in queue for a deal.

Mumbai-based M&M has been on an acquiring spree and had bought a 70 per cent stake in embattled Korean firm, SsangYong Motor, for about $368 million last year. After the takeover, SsangYong was able to spend nearly $208-million on product development and brand building.

Recently, the SUV maker also bought out Renault’s stake in the Logan sedan joint venture and took control of Bangalore-based Reva Electric Car Company.

In 2010, General Motors (GM) sold Saab to Dutch sports car manufacturer, Spyker Cars NV (SWAN), and the company was renamed Swedish Automobile NV.

According to CEO Victor Muller, there are many potential companies from Sweden and other nations that are interested in purchasing a part or whole of Saab Automobile.

Owning a luxury car brand like Saab would give Mahindra a wide penetration of the market.

However, it would need to get the go-ahead from Saab's previous owner, GM, before any final deals are struck. GM recently blocked a Chinese investor's attempts to save Saab from bankruptcy, as it didn't want its own technology, still present in Saab products, to land in the company's lap.

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