The deal that would see a local consortium led by Edison Motors taking over SsangYong Motor has collapsed due to Edison's payment failure.

Edison Motors, the electric bus maker, was supposed to pay about 270 billion won by Friday to acquire Ssangyong under the deal, but failed to do so.

SsangYong, the South Korean unit of Indian carmaker Mahindra and Mahindra, said on Monday that the deal was automatically canceled due to Edison's failure to pay.

Edison Motors paid 30-point-five billion won, or ten percent, of the acquisition money as a down payment, and had to pay the remaining 274-point-three billion by the deadline.

The collapse comes about two months after the Edison-led consortium signed the acquisition deal with SsangYong on January 10.