A US government panel has approved the purchase by China's biggest auto parts maker, Wanxiang Group, of nearly all the assets of A123 Systems Inc, a Massachusetts-based maker of electric-car batteries that declared bankruptcy last year.
Ni Pin, president of the Chinese company's US subsidiary, Wanxiang America, said company lawyers were working on final details of the $257 million deal at a court-supervised bankruptcy auction in December.
Regarding the decision by the Committee on Foreign Investment in the United States, or CFIUS, Ni said in an interview: "Symbolically, it is a sign of how the US government deals with foreign investment." Wanxiang America on Tuesday announced the committee's decision.
The federal interagency committee, led by the Treasury Department, reviews large or sensitive deals involving foreign investors in the US.
The CFIUS panel has rejected acquisition attempts by Chinese companies in the past. Some members of Congress and retired military officers had asked the CFIUS to reject the Wanxiang bid on national-security grounds, citing A123's defense contracts.
"It is a procedural issue. As long as you are transparent, follow the procedures and rules, and address the issue, it should be OK," Ni said.
Wanxiang will acquire all of A123's assets in three business segments - automotive, grid and commercial operations - and their technology, products and customer contracts.
Also included are manufacturing plants in Massachusetts, Michigan and Missouri; a cathode-powder plant in China; and an equity stake in Shanghai Traction Battery Systems Co, a joint venture with Shanghai Automotive Industry Corp.
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