India’s biggest truck maker, Tata Motors, said on Wednesday it had been selected as the “preferred bidder” for South Korea’s bankrupt Daewoo Corp’s truck unit, Reuters reported.
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Ravi Kant, executive director of Tata Motors’ commercial vehicles business unit, told Reuters by telephone the company expected to sign an agreement next week and would begin due diligence thereafter.
Daewoo Commercial Vehicle Company is the second-largest maker of heavy commercial vehicles in Korea with a market share of 26%, the report noted, adding that the company, which produces trucks, tractors and other utility vehicles, has been under court protection, while its parent Daewoo Motor sold most of its passenger car operations to General Motors and partners last year, creating GM Daewoo Auto & Technology Co.
Reuters said the takeover price offered by Tata was not disclosed but a published report quoted industrial sources as estimating it at $US85-$169 million.
With the acquisition of Daewoo Commercial, Tata Motors would have a full production line by adding large truck operations, the newspaper said, according to Reuters.
