In the 'Ssangyong Motor Acquisition Battle,' Leading Candidate SM Group Withdraws... Is Edison Motors Solidifying Its Dominance?

Existing Preferred Negotiator Cardinal One Motors Also Absent
ELBNT Without Advisor and US IndieEV Participate in Main Bidding

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] SM Group, a leading candidate to become the new owner of Ssangyong Motor amid ongoing sale procedures, withdrew from the final bidding on the 15th. This has disrupted the two-horse race dynamic, drawing attention to whether Edison Motors can run unopposed.

According to industry sources, SM Group was not included in the list of Ssangyong Motor acquisition proposal submitters, which closed at 3 p.m. that day.

The industry had anticipated the Ssangyong Motor acquisition battle to be a two-way contest between SM Group and the Edison Motors consortium. SM Group, with assets totaling 10.45 trillion KRW, was regarded as the only company among the preliminary due diligence participants capable of covering acquisition funds without external investment. In particular, SM Group Chairman Woo Oh-hyun had shown strong determination, stating, "I will acquire Ssangyong Motor using internal funds."

The reason for SM Group's sudden decision not to participate in the final bidding is attributed to the faster-than-expected transition of Ssangyong Motor to electric vehicles.

An industry insider familiar with SM Group's situation said, "SM Group planned to focus on internal competitiveness within the group to stabilize Ssangyong Motor over the next two to three years while preparing step-by-step for the eco-friendly vehicle market, including electric vehicles. However, they judged that SM Group's Ssangyong Motor stabilization plan might somewhat diverge from the global automotive industry's rapidly shifting trend toward eco-friendly vehicles, leading to their decision to withdraw."

The Edison Motors consortium also decided to participate in this final bidding. Recently, Edison Motors secured financial mobilization capabilities by attracting major private equity funds KCGI and Keystone Private Equity (PE) as financial investors (FI). Edison Motors has already announced securing 270 billion KRW from individual investors and others. Additionally, they plan to raise about 250 billion KRW through Semisysco's paid-in capital increase and convertible bond (CB) issuance, and receive approximately 400 billion KRW in investments from FIs to fund the acquisition.

The previous preferred negotiator, U.S.-based Cardinal One Motors (formerly HAAH Automotive), also did not participate in the final bidding. On the other hand, EL B&T, an electric vehicle and battery manufacturer that did not select a legal advisor during the preliminary bidding, and U.S. electric vehicle venture company IndiEV have entered the final bidding.

This content was produced with the assistance of AI translation services.