Daewoo Group will take a 53.5% controlling stake in Ssangyong Motor
Co. Ltd. Executives from Daewoo and Ssangyong have announced they will complete the
agreement before the end of this year.
Daewoo will assume around US$1.7 billion of Ssangyong’s current loans, which total
US$2.79 billion. Daimler-Benz AG will retain its 2.4% stake in Ssangyong, and Daewoo Group
has said that technology and distribution agreements between Ssangyong and the German
group will continue, pending an appropriate review.
A Daewoo Group spokesman said Ssangyong’s product line is entirely complementary
with Daewoo products and will be an excellent mix. Ssangyong makes recreational and cargo
vehicles and has recently launched a luxury sedan in Korea.
The Managing Director of Daewoo Automotive Australia, Ric Hull, said: "It is a
welcome development, and will present exciting opportunities for Daewoo. It is too early
to say what impact the takeover will have in Australia, however Daewoo Group has said it
will undertake a complete analysis of Ssangyong’s position before proposing any
changes to Ssangyong’s current business plan."
Chohung Bank, one of Ssangyong’s major creditors, has said the takeover will be
finalised by December 15, and that Daewoo would assume debts related to capital
investments, foreign exchange loans and leasing.
