Mahindra & Mahindra (M&M) has acquired South Korean Ssangyong Motor Co Ltd in a deal that will strengthen the Indian automaker's SUV portfolio.

M&M, which makes trucks, SUVs, MUVs and Crossovers, signed the SKW 522.5 billion ($464 million) deal last week that will enable it to acquire 70 percent stake in the ailing South Korean automaker.

The deal, a mix of debt and equity, was filed on Nov. 23 with the Seoul Central District Court, which is overseeing Ssangyong's restructuring.

The sale is expected to complete by March 2011. As part of the deal, M&M has already deposited 10 per cent of the final purchasing price.

According to M&M President (Automotive & Farm Equipment Sectors) Pawan Goenka, the deal would create a competitive global UV player.

Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy while Ssangyong has strong capabilities in technology, Goenka said.

While Ssangyong's premium portfolio of SUVs will strengthen [M&M's] dominant position in the UV segment, M&M's strong presence in the Indian market will provide a new growth avenue for Ssangyong, he added.

Ssanyong is the maker of SUVs like Musso, Rexton, Korando C and Kyron. It also makes the 'Chairman' luxury sedan. The company exports its vehicles to Russia, China, Europe and the Middle East.

The deal is part of a court-led restructuring plan since February 2009 as the global recession hit car sales.

Rothschild and Samsung Securities acted as the financial advisers for M&M. For Ssangyong Motor, Macquarie Securities acted as the financial advisor, Samjong KPMG acted as the accountant and Shin & Kim acted as the legal adviser.