Romania plans to launch the sale of its 72.4% stake in carmaker Daewoo Automobile by early next month, the government told a news agency on Friday.
Go deeper with GlobalData
According to Reuters, the centrist cabinet has said it hopes to wrap up the process by June, after it bought back the majority stake in the company from its bankrupt owner late last year. So far, the state has received four letters of intent from General Motors, Ford, Tata and Chery Automobile.
“A preliminary sale announcement will be made by the first week of March at the latest. The privatisation committee decided to sell the state’s whole stake,” the government told Reuters after a meeting between prime minister Calin Tariceanu and Ford representatives in Bucharest.
The news agency noted that the head of Romania’s privatisation agency, Teodor Atanasiu, has said he envisaged the buyer would have to ensure a minimum yearly output of 300,000 units.
Under the terms of the buyback deal, Romania paid $US51m for Daewoo Motor’s stake and $10m for debts stemming from past loans secured by the carmaker, the report said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataMany auto parts makers have set up in Romania recently, lured by the rising output of Renault’s Dacia plant, cheap labour, favourable tax rates and its European Union entry in January, Reuters added.
