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Wednesday, 10 April, 2002, 13:44 GMT 14:44 UK
GM-Daewoo deal due 'this month'
South Korean unions have finally given their blessing to the plan by US car giant General Motors to take over its struggling Korean rival Daewoo Motor.

According to the Korean Development Bank (KDB), one of Daewoo's key creditors, a final contract is due by the end of April.

"We have virtually struck a deal," said KDB governor Jung Keun-Yong. "Creditors and GM agreed on key issues last week."

Union opposition to GM's planned changes to collective bargaining agreements had been a major sticking point, but unions are now backing the deal.

"[The deal] will certainly be passed," a union spokesman said. "At least until the signing of the final contract, labour issues will not be an obstacle."

Three years of bargaining following Daewoo's bankruptcy in 1999 produced the current offer.

But the deal is less extensive than many would have liked. GM's plans exclude 13 plants in Korea, Poland, Uzbekistan and elsewhere which creditors will have to dispose of themselves.

One of them, a plant in Egypt, was originally seen as part of the takeover package, but GM has now changed its mind.

See also:

03 Apr 02 | Business
Daewoo reduces losses
19 Feb 02 | Business
GM sees Daewoo deal in 60 days
08 Jan 02 | Business
Daewoo cuts jobs to ease merger
24 Sep 01 | Business
Daewoo deal 'favours' GM
21 Sep 01 | Business
GM signs Daewoo deal
18 Sep 01 | Business
GM 'optimistic' on Daewoo deal
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