Fleet News

Daewoo takes control of SsangYong

DAEWOO has formally agreed to take a controlling share in Korean rival manufacturer SsangYong Motor after weeks of negotiations. Under the terms of the deal, Daewoo will pay $35.5 million for SsangYong and assume around half of the manufacturer's $1.88 billion debt to gain a stake of 51.98% - 48% of which will be held by Daewoo's motor division.

The acquisition gives Daewoo a complimentary range of 4x4 vehicles and light commercial vehicles and a luxury car which doesn't overlap with its existing products. It gives SsangYong a much wider network of distributors worldwide and Daewoo is already looking into the potential for marketing the two vehicle ranges in the same markets. Daewoo is also in negotiation with Mercedes-Benz, which has a 3% share in SsangYong, with a view to promoting greater co-operation between the two companies.

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