Renault and Mahindra could bid for Ssangyong

Sources say that France’s Renault and India’s largest utility vehicle and tractor maker Mahindra & Mahindra are both interested in the bankrupt South Korean company Ssangyong.

That would bring the total number of prospective bidders to seven.

The fact that those overseas companies have entered the auction for the maker of four-wheel drive vehicles sent its shares soaring.

Ssangyong has a tiny share of the South Korean market – just two percent – and has been under the control of a court appointed administrator since early last year.

It is estimated it will sell for around 400 million euros.

Renault already has a presence in South Korea, a joint venture with Samsung which makes it the third largest manufacturer there.

Buying Ssangyong could help it close the gap with the dominant local carmakers, Hyundai and Kia, which control 80 percent of the market.

Final bids have to in by mid July.

Copyright © 2012 euronews