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Automobile major Mahindra & Mahindra's South Korea-based SsangYong Motor will be acquired by consortium of South Korean electric carmaker Edison Motors.

"We are happy to hear that Edison Motors consortium has formally agreed to acquire SYMC and that the acquisition will progress to the next stage, in a defined time frame," said a Mahindra & Mahindra spokesperson.

"We will cooperate with the new investor in enabling the transition."

In 2010, Mahindra & Mahindra acquired around 75 per cent stake in the company with an aim to revive it. After a decade, in 2020 it decided to not invest anymore and subsequently considered selling its stake.

However, it could not find any buyer, which led the South Korean carmaker to file for bankruptcy in 2021.

In a statement,ASsangYong Motor said: "Apart from the acquisition money, Ssangyong Motor will receive a loan of 50 bn won from Edison Motors Consortium for the smooth function of Ssangyong Motor's operations."

Besides, it said that a meeting with stakeholders and creditors will be held after it receives the acquisition money.