Videocon Industries will pay approximately U.S. $113 to acquire South Korea-based Daewoo Electronics Corp., according to sources reported by the Economic Times. The sources say it could be several months before the deal is made official.
As APPLIANCE reported on July 21, 2005, the state-run Korea Asset Management Corp. (KAMCO) is eager to sell Daewoo Electronics. The troubled home appliances maker has been in a debt workout program since parent Daewoo Group collapsed under debts of nearly U.S. $80 billion in 1999. KAMCO is a state asset management company and a major shareholder in Daewoo Electronics, once one of Korea's top home appliance makers. Woori Bank, South Korea's second-largest lender, is handling the sale procedure.
This is just the latest acquisition by the Mumbai, India-based appliance and consumer electronics company. It bought Electrolux's Indian operations in the second half of 2005, including rights to use the Electrolux brand in India for 5 years and use the Kelvinator brand in India and selected markets for an unlimited time.
Just 1 month before the Electrolux deal was struck, Videocon bought all of Thomson's cathode ray tube (CRT) facilities in China, Mexico, and Poland.
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