Even as he seems set for entering the penultimate phase of the race for Korean automobile company SsangYong Motors, the Dunlop India Chairman, Pawan Ruia, is hoping to wrap up a deal for buying out the assets of an automobile ancillary company in Germany, possibly within a month.
The target company is currently with an administrator after falling into bad days in the wake of the economic meltdown and it now has around 110 employees. However, it is the technology that this small company has, which has attracted the attention of Mr. Ruia, it was learnt.
Sources said that the privately-held company is operational and the Ruia group would buy out majority of the equity, with the rest remaining with the administrator. Several other companies were also in the race for acquiring this company, sources said.
When contacted, Mr. Ruia said “We are working on a few deals in Europe but I am not in a position to either comment or deny this particular deal.”
In 2008, the Ruia group bought out a sealing system company Schlegel Automtive in the U.K. marking its first overseas acquisition.
As for the proposed acquisition of SsangYong Motors, it was learnt that the decision would hinge on the due diligence report of Delloitte Touche and the presentation to be made before the prospective bidders by the management of the Korean company. At least five companies are in the race for this takeover.