The high-profile collapse of talks between Ford Motor and Daewoo Motor in mid-September underscores Renault's successful manoeuvring in clinching its deal with Samsung Motors. Negotiations between the French automobile manufacturer and Samsung, which took nearly a year to conclude, hinged on persuading creditor banks and Samsung to accept an equity position in a joint venture. The banks, naturally, just wanted all their money back. And Samsung was said to want to divest totally. But Renault was keen to keep Samsung and the creditor banks involved, believing this would ensure the long-term viability of the carmaker. Stuart Mowbray of SG Securities, which advised Renault on the acquisition, says: “Renault didn't just want to buy assets and see everyone walk away. We had to have the assets up and operating again and there were strong benefits in making sure that the support of all parties was continued.”
October 01, 2000