Korea's Daewoo buys SsangYong Motors

Daewoo acquired a majority stake in debt-ridden SsangYong Motors. The deal could signal the start of a major shakeout of the Korean motor industry. The departure of SsangYong reduces the number of automakers in Korea to four, but analysts say even that could be too many. The sale has also been criticized because of the favorable terms granted by the government, which gives Daewoo 10 years to pay off SsangYong Motors' $1.6 billion of debt.

The deal, however, is a perfect fit, giving Daewoo a range of different vehicles including 4x4s, vans, trucks and the new Chairman limousine, based on the old Mercedes E-Class. Daewoo is keeping the businesses separate for now, but will likely …