Talks on Daewoo Motors' takeover of moribund Samsung Motors have now entered the final stage and is likely to be closed by the weekend, company sources said here.

The auto `big deal' is close to the end. Both parties aim to close the deal soon after fine-tuning some minor details through working level negotiations, the sources added.

The sources further pointed out that the long delayed merger would have no direct impact on the Indian market due to non-availability of any model in the Samsung stable "that would prove a good draw in India."

The big deal would be significant only for the domestic market here.

"The Samsung line-up consists of just one model, the `SM-5', which is positioned slightly above the Cielo. So, there is no likelihood of any joint launches in India following the deal,"the sources added.

Prior to the big deal, Daewoo Motors had purchased the vehicle manufacturing arm of the Ssangyong group along with the vehicle brands--Musso, Istana, Chairman and Korando. The vehicles from Ssangyong stables were being studied as probable roll-outs for India. However, the high price tags that these vehicles carry and the niche market they cater to, forced Daewoo Motor Company to decide against getting them to India.

"India is a price sensitive market. So it does not make good business sense to sell these models here," senior Daewoo officials said.

Meanwhile, chairman of the financial supervisory commission (FSC) Lee Hun-Jai had announced earlier that both Daewoo and Samsung have narrowed differences on key issues, including asset valuation and debt assumption.

The big deal forms part of a restructuring exercise undertaken by the Korean conglomerates under which the Samsung auto division would be swapped with Daewoo Electronics.

However, sources said negotiations for transferringDaewoo Electronics would commence after successful completion of the auto big deal.

The two chaebol have already missed the June 13 deadline for completion of their auto talks. But the outlook is bright and the deal would be concluded soon, Lee had said.

FSC and industry observers had forecast that the bulk of Samsung Motors' 4.3 trillion won ($3.67 billion) in debt and parts suppliers' operational losses, estimated at 600 billion won, will be taken over by Samsung group affiliates and creditor banks.

The observers further pointed out that it would be noteworthy how the two groups will iron out the asset-valuation gap, which had shrunk from three trillion won to 1.5 trillion won by last week.

Time is rapidly running out with banks' quarterly asessment of chaebol reforms and a meeting between President Kim and Chaebol leaders scheduled for July at `Chong Wa Dae.'

"Should no satisfactory progress be made this week, regulators and creditors may have no choice but to slap financial sanctions on theparty found to be dragging its feet," an industry observer said.

Calling the stalemated auto big deal a serious drag on overall chaebol restructuring, FSC chairman Lee had urged on June 5 that the two companies close the deal within a week or face harsh financial sanctions including suspension of loans.