Mumbai, Aug 23 - Indian automobile major Mahindra and Mahindra (M&M) Monday entered into an agreement with Ssangyong Motor to acquire a majority stake in the South Korean sport utility vehicle maker and expand its business in international markets.

"M&M today (Monday) signed an MoU (Memorandum of Understanding) with Ssangyong Motor Company (SMC) to acquire a majority stake in the SUV maker," M&M said in a regulatory filing to the Bombay Stock Exchange.

The deal is expected to be wrapped up by November.

M&M did not divulge on how much it was paying for getting a controlling stake in Ssangyong.

"Ssangyong brings with it a rich legacy of R&D and innovation. India is a rapidly growing SUV market and will create new avenues for Ssangyong. The synergies between the both brands will make us a global force to reckon with in the global utility vehicle space," said Anand Mahindra, vice chairman of M&M.

Media reports say Ssangyong has a debt of $1 billion.

The Chinese carmaker Shanghai Automotive Industry Corp (SAIC) had earlier failed to turn it around and reduced its stake in SsangYong from a majority 51 percent to a mere 3.8 percent. In December 2009, the Seoul Central District Court approved a restructuring plan for the debt-ridden SsangYong.

M&M, which pipped the Kolkata-based Ruia Group in the race to acquire SsangYong, has been eying the Korean company for its technology and and access to markets overseas, where car prices and profit margins are said to be higher.

Ssangyong, which has about two percent of the South Korean market, exports to Russia, Europe, China, Middle-East, Africa, North and South America and the Asia-Pacific.

Ssangyong, produces a whole range of sports utility vehicles (SUVs) which fits into M&M's portfolio. The potential deal would give Mahindra access to many overseas markets as it aims to be a global player in the segment.

It would also give it access to new technologies, particularly in diesel engines, which could be used for Mahindra's existing vehicle range.

At the Bombay Stock Exchange, the M&M scrip rose over 2.7 percent to touch an intra-day high of Rs. 634.50, before settling at Rs. 622.75 in afternoon trade. It had closed Friday at Rs. 617.75.  (IANS)