Automobile Craiova to take over Daewoo next week

Automobile Craiova, a minority stakeholder in Daewoo Automobile Romania, will next week take over the majority stake in the carmaker from South Korea’s Daewoo Motor company, according to Economy Ministry sources. In the wake of the deal, Automobile Craiova will control 100% of Daewoo Craiova’s capital. The representatives of the South-Korean firm will reportedly arrive in Bucharest next week to sign the contract related to the takeover of the majority stake by Automobile Craiova, the above-quoted sources also stated. Automobile Craiova convened a meeting of its General Extraordinary Assembly of Shareholders for September 19 for the ratification of the decision on the takeover of shares held by Daewoo Automobile in DWAR. Daewoo Motor holds 51 percent in Daewoo Automobile Romania stock, with the rest of the 49% belonging to Automobile Craiova, in which the state controls a 72.4 percent stake. Two weeks ago, Economy Minister Codrut Seres said the Office of State Participations and Privatisation in Industry would make an announcement on the privatisation of Daewoo Craiova in the second half of September, as soon as the majority stake is taken over from the Korean side. General Motors, Ford, Renault-Nissan and Chery Automobile (China) are quoted as possible investors likely to take over Daewoo Automobile Romania.