Thursday, January 18, 2007

Tata Motors to bid for Daewoo Romania

The Tata Group is planning to buy Daewoo Automobile Romania. Daewoo Romania was established in 1994 as a 51:49 JV between the Daewoo Group and the Romanian government.

The Romanian plant can produce 100,000 cars, 150,000 engines and 200,000 trans-axles. Bidding for Daewoo Automobile Romania, would heat up because of interest from global automobile giants such as Ford and Renault-Nissan and the Tata Group, which is in the middle of a bidding war with Brazil's CSN for the Anglo-Dutch steel-maker Corus. Daewoo Automobile Romania makes a range of Daewoo vehicles like the Matiz, Cielo, Nubira and Tacuma, and 1.5 litre petrol engines.

Daewoo was bought over by General Motors in 1999, but the US giant did not take over the Romanian venture. Recently, the Romanian government bought out Daewoo’s stake for $50 million and restructured the $10 million of the company’s debt.

Tata Motors last year acquired Nissan's South Africa plant for an undisclosed amount. The year before, it took over Daewoo Commercial Vehicles for $102 mn.

Read the Business Standard article.

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