GM Daewoo Auto & Technology Co. said on Monday it has signed a preliminary agreement to acquire automatic transmission maker Daewoo Powertrain for $US44 million from Daewoo Telecom, Dow Jones reported.
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GM Daewoo said it has signed a preliminary agreement with Daewoo Telecom and Woori Bank, which is in charge of Daewoo Telecom’s restructuring efforts, and the companies expect to finalise the agreement and transfer assets to GM Daewoo before the end of this year, the report said.
“This deal successfully completes the objectives of the work-out procedure for Daewoo Telecom…it will also be a turning point for Daewoo Powertrain putting it in a position to grow profitably,” Daewoo Telecom chief executive Kim Yong Koo said in a statement cited by Dow Jones.
Daewoo Powertrain employs 320 people and has an annual capacity of 400,000 automatic transmissions and a GM Daewoo spokesman told Dow Jones all of its employees will be transferred to GM Daewoo.
