The US-based Ford motor company's negotiations to takeover the beleagured South Korean car maker Daewoo Motors and its overseas operations, including the Indian venture, is progressing smoothly and an agreement is likely in September. The due diligence of Daewoo operations has mostly been completed and Ford Motor Company (FMC) is ''working very hard towards a timely conclusion of negotiations,'' Ford spokesperson Meera Kumar told UNI.
However, Ms Kumar refused to divulge details about the due-diligence exercise citing a confidentiality agreement. ''This (Daewoo) is a large and complex undertaking and it is imperative that the interest of our shareholders and the interest of Korea and the Daewoo brand is safeguarded.''
Stating that negotiations are well on track, she said, Ford has commenced discussions with the corporate restructuring committee in Seoul.
In June, the committee had selected Ford as the sole bidder to open negotiations to buy Daewoo motor. Ford had offered 7.7 trillion won for Daewoo motor and its affiliates, including the passenger car division of sister company, Ssangyong Motor. Ford would be required to submit a final, binding proposal with deposits by early September.
Bureau Report