BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 


The BBC's Caroline Gluck
"Samsung's domestic creditors accepted Renault's bid"
 real 28k

Tuesday, 25 April, 2000, 05:42 GMT 06:42 UK
Renault takes over Samsung
Renault web site
Renault gains another important foothold in Asia
Creditors of the South Korean car manufacturer, Samsung Motors, have approved Renault's takeover of the firm.

The deal - worth $560 million - gives Renault a 70% stake in the company.

Samsung's 16 creditors agreed to Renault's bid following negotiations between the two sides at the weekend in Paris.

The agreement marks the first time a foreign car maker will be allowed to operate in South Korea.

Foothold in South Korea

The deal gives Renault a foothold in the South Korean market, which correspondents say is one of Asia's largest and least accessible.

Of more than 900,000 cars sold in South Korea last year, fewer than 3,000 were imported.

Up until now, the market has been controlled by three domestic car companies - Hyundai, Kia and Daewoo.

Under the terms of the deal, Renault will take over the Samsung brand name, its national commercial network, the company's ultra-modern plant in the southern port city of Pusan and its research and development centre.

The Pusan plant is capable of producing 240,000 cars a year - although at present, it is only working at 25% capacity.

Samsung Motors has been in receivership for more than a year, with $4 billion of debts.

The company was severely hit by the 1998 Asian financial crisis, when the car industry globally faced a slowdown.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE
See also:

21 Apr 00 | Business
Renault to buy Samsung
06 Mar 00 | Business
Renault's $450m Samsung bid
06 Jan 00 | Business
Ford moves on Daewoo
25 Aug 99 | The Company File
New action plan for Korea's big five
04 Jan 00 | Asia-Pacific
Renault plans Korean takeover
01 Jul 99 | The Economy
Asia's crisis: The country breakdown
15 Feb 99 | The Company File
Samsung strikers settle dispute
Internet links:


The BBC is not responsible for the content of external internet sites

Links to other Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories