Chinese bid wins auction for A123

[WestVirginiaRebel]

Financial Times:

A Chinese car parts maker has won the auction for bankrupt US battery maker A123 Systems, in a further success in international dealmaking for Chinese groups.

Wanxiang Group bid about $257m to win the auction for the battery maker, which supplies electric cars. The sale still requires the approval of the Delaware court where A123 filed for bankruptcy.

The US group will formally submit the bid to the court for approval on Tuesday. The sale will also require the approval of the US Committee on Foreign Investment.

In an effort to ease political approval, Wanxiang will not be taking over A123’s defence business, which will be sold to Illinois-based Navitas for $2.25m.

“We think we have structured this transaction to address potential national security concerns expressed during the review of our previous investment agreement with Wanxiang announced in August, as well as to address concerns raised by the Department of Energy,” said Dave Vieau, chief executive of A123.

Wanxiang beat a joint bid by Johnson Controls of Milwaukee and Japan’s NEC. Its victory comes after Cnooc, the Beijing backed oil group, on Friday secured Canadian approval for its $18bn bid for Nexen, the biggest Chinese M&A deal on record.

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Our own socialists couldn't save 'em, so the Chinese are going to give it a shot.

[Argyle58]