Volkswagen ready to buy out LDV

The German car maker Volkswagen is close to reaching agreement to buy the Birmingham-based van maker LDV. The takeover will mark the fourth change of ownership in 13 years for the company, formerly part of British Leyland.

The German car maker Volkswagen is close to reaching agreement to buy the Birmingham-based van maker LDV. The takeover will mark the fourth change of ownership in 13 years for the company, formerly part of British Leyland.

VW is in advanced negotiations to buy out the stakes in LDV held by the ailing Korean car group Daewoo and the venture capitalists 3i in a move that will give it majority control.

Daewoo owns 50 per cent of LDV's equity and 30 per cent of the voting rights. The remaining shares are held by 3i, a number of institutional investors and the LDV management, led by managing director Allan Amey, which owns 25 per cent.

A deal with VW will give LDV access to European distribution networks, enabling the company to maximise sales of its new van model that will go into production next year after a £180m investment programme. LDV is reliant on the UK for 90 per cent of its sales.

An LDV spokesman said: "We have been speaking to a number of companies about forming a strategic partnership to take the company forward and provide an overseas distribution network. VW is one of those companies but we are not yet at a point where we can say a deal has been done."