Renault to buy bulk of Samsung to start new venture

NEWS French car maker Renault has made an offer to acquire 70 per cent of the Korean manufacturing operations of Samsung Motors. Renault is proposing to create a new company with Samsung. Renault will own 70 per cent and invest $235m while Samsung will invest $100m in the joint venture If the offer is accepted, Renault will acquire Samsung's research and development factory in Kiheung, its Pusan manufacturing operations, all the company's commercial research and 2,000 staff members as well as the rights to the Samsung brand name. In a statement, Renault claimed it made the offer as part of plans to increase its presence in the Asian market. The French company already has close links with Japanese car maker Nissan. However, Renault set an acceptance deadline of 31 March. Samsung Motors has been in liquidation since December after collapsing under debts of FF22.2bn (£2.07bn).