Leading sports utility vehicle maker Mahindra and Mahindra recently said that the company has been chosen as the preferred bidder the cash-strapped South Korean Ssangyong Motors and the company also mentioned that a preliminary agreement will be signed within weeks to take over the bankrupt company.

While the announcement came after creditors in Seoul said the Indian company was its preferred bidder, Mahindra and Mahindra's head of automotive and farm equipment, Pawan Goenka said that the deal would cover Ssangyong's long-term debt. Moreover, Goenka also highlighted the fact that the company has been selected as the preferred bidder because of the highest value that is offered by the company and M&M will get a debt-free company in return.

While a definite agreement among the two parties is expected to be signed in November this year, it has been learned that the company will sign a memorandum of understanding in two weeks and due diligence would be finished by October.

Company vice-chairman and managing director Anand Mahindra said that it is the largest investment made by any Indian company in the South Korea region and it will provide a perfect platform for M&M for the global expansion plans.