Mahindra buys controlling interest in Ssangyong

South Korean automaker Ssangyong was forced into bankruptcy protection early last year, amid a serious cash shortage. Caused by the decline in sales of its line of SUV's.

Trucks like the once popular Kyron, and Actyon have fallen out of favour with buyers. And the company just didn't have the money to remain competitive.

So, its creditors decided to allow Indian automaker Mahindra & Mahindra to acquire a controlling interest in the company.

For 522.5 billion won, Mahindra is purchasing a 70% stake in the company, along with 95.4 billion worth of Ssangyong corporate bonds.

"Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy while Ssangyong has strong capabilities in technology," Mahindra President Pawan Goenka said in the statement. "We are committed to leveraging the combined synergies by investing in a new Ssangyong product portfolio to gain momentum in global markets."