General Motors Corp and Daewoo Motor Co creditors are scheduled to sign a final contract today to conclude the sale of some of the South Korean automaker's assets to the world's No. 1 carmaker, ending almost three years of talks.
The signing will be held at 2pm local time at the Hilton Hotel, ending more than seven months of talks since they signed an initial agreement in September, Korea Development Bank and Daewoo Motor Co said in separate statements. General Motors Chairman John Smith will attend the signing ceremony, said Rob Leggat, a spokesman for the US-based automaker.
General Motors, which wants to use Daewoo as an export base in Asia, had to overcome worker opposition to the purchase and make sure there wasn't any hidden debt since starting talks in 1999. The Detroit-based automaker also seeks to increase sales in Asia's second-biggest car market, which is dominated by Hyundai Motor Co and affiliate Kia Motors Corp.
The final signing "will give a positive signal that South Korea is on track with its reforms aimed at attracting more foreign investment," said Kim Hyun-tae, who manages 200 billion won (US$155 million) at Hanvit Investment Trust Management Co in Seoul.
Daewoo Motor's labor union removed the last major stumbling block in the sale negotiations on April 16 when it approved a revised collective bargaining agreement with management. The South Korean carmaker guaranteed jobs of 13,000 workers after the asset sale to General Motors and promised to rehire 300 workers by the end of this year.
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