South Korean automaker KG Mobility, renamed from Ssangyong Motor earlier this year, is expected to complete its acquisition of Edison Motors by September after it was named as the final bidder earlier this week for the heavily indebted electric commercial vehicle manufacturer which has been under a court led restructuring process since January.
Ironically, just two years ago, Edison Motor had successfully bid to acquire Ssangyong Motors from bankruptcy but failed to complete the acquisition. Ssangyong Motors was later acquired by local steel and chemicals company KG Group and renamed KG Mobility.
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KG Mobility submitted a letter of intent to the Changwon bankruptcy court to acquire Edison Motors in April, followed by an investment proposal for the company, after it carried out preliminary due diligence in early April. KG Mobility said in a statement that once the acquisition was completed, it would rename the company KGM Commercial and transform it into a full scale manufacturer of environment friendly commercial vehicles.
It plans to expand Edison Motors’ product range, which currently mainly consists of large electric buses, to include small and medium-sized electric buses and trucks. It will also target overseas markets to maximise growth potential.
