Ford is buying a majority share in a car plant at Craiova, Romania. The plant is expected to become one of its biggest plants in the European Union. The factory was previously operated by Daewoo of Korea.
John Fleming, president of Ford of Europe, said last week that its due diligence had been completed and a price agreed
The factory, which started life making versions of Citroën cars and was taken over by Daewoo in 1994, has a capacity of 300,000 cars a year and the attraction for Ford is that it can make engines and transmissions as well as cars and has a fully trained workforce.
The size of the bid has not been declared but Ford is expected to invest €675m (£457m) in the factory.
Fleming said it would take 12 to 15 months from completion of the sales agreement to adapt the plant to produce a series of Ford models.
Carmakers are flocking to Romania to take advantage of labour rates.