| Tuesday, January 16, 2007 |
| Tatas eye Daewoo Auto Romania |
The Tatas love making deals. After many a bid worldwide, the group is of late eyeing Daewoo Automobile Romania, say reports.
It has been reported that the Tata group may take on global automobile giants in an attempt to buy Daewoo Automobile Romania. This follows news that Romanian government has put privatisation plans of the company on the fast track.
Reports quoting sources said that the government of Romania had recently set up a panel to chart out an expeditious and transparent auction. Following this, the Tatas would soon begin examining the company, they added.
The group will go ahead with its plans with Tata Motors as its investment vehicle, it is learnt. Daewoo Automobile Romania boasts of a capacity to produce 100,000 cars, 150,000 engines and 200,000 trans-axles.
With such an ambitious base, Daewoo Automobile Romania is considered a good target by many, and the interest from global automobile giants would heat up. This could mean that the Tata group may have to put up an aggressive bid.
Daewoo Automobile Romania makes a range of Daewoo vehicles like the Matiz, Cielo, Nubira and Tacuma, and 1.5 litre petrol engines. It was established in 1994 as a joint venture between the Daewoo group (51 per cent equity) and the government of Romania (the rest). 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.Labels: Auto Industry |
| posted by a correspondent @ 10:46 AM |
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