BUSINESS

Tata Motors to buy Daewoo's CV business

MUMBAI OCT. 22. Tata Motors has been intimated today that it has been selected as the `preferred bidder' for acquiring Daewoo Commercial Vehicle Company Ltd. (DWCV) Korea. The `preferred bidder' status would require it to enter into a memorandum of understanding to be negotiated with DWCV, followed by a detailed due diligence process. DWCV, the commercial vehicle unit of Daewoo Motor Corporation, was incorporated under a reorganisation plan on November 1, 2002 and is now the second largest manufacturer of heavy commercial vehicles in Korea with a market share of 26 per cent.

PTI reports:

The possible acquisition of the Daewoo plant is likely to help Tata Motors in its bid to make the `truck of the future,' the prototype of which is likely to be ready by 2005-06. Reports earlier have stated that Tata Motors plans to acquire the commercial vehicle plant to fasten its growth in Southeast Asian markets.

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