Beijing Hainachuan Automotive Parts, a subsidiary of BAIC Group, has said its acquisition of Inalfa Roof Systems will be completed next month after it passes antitrust scrutiny by the Chinese government.

China Daily noted that Hainachuan reached an agreement to buy 100% of the Netherlands company in April after beating out four other bidders including Magna Steyr.

Inalfa is one of the world's largest suppliers of systems and components used in sunroofs and Hainachuan will pay about EUR190m (US$271m) in the acquisition, according to its president, Guo Xinmin.

In addition to Europe, Inalfa has facilities in China, the US, South Korea, Brazil, Mexico and Japan. Its China headquarters is in Shanghai where it also has an R&D center. It has a factory in Yantai, Shandong province.

Inalfa supplies roof systems to BMW, Daimler, Ford, General Motors, Volkswagen, Volvo, Renault, Nissan, Hyundai and Kia as well as Chinese carmakers Chery and Volvo owner Geely.

It is estimated that Inalfa will generate EUR500m (US$713million) in revenue this year, China Daily said.

Inalfa CEO Marcel Schabos said in April that the move would enable the company to "take advantage of the considerable growth opportunities in Asia".

Hainachuan said the deal would help it to expand and climb onto the global stage.

"What we value is the profitability of Inalfa," said CFO Dong Junxiang.

Dong said the top three companies in the sector now account for 78% of global vehicle roof sales. Inalfa ranks second with stable supplies to clients worldwide.

Liu Yinan, managing director of Hainachuan, said mergers and acquisitions were now the trend in the auto component industry.

The company intended to take over more companies both at home and abroad, Liu told Chinese language media.

Hainachuan has 28 companies that cover businesses in sectors ranging from vehicle interiors, exteriors and seat to electronic system and chassis. The company was co-founded by BAIC Group and Beijing Industrial Development Investment Management in 2008 with BAIC holding a 60% stake.

It plans to be publicly listed before 2013, according to its website. Insiders said the acquisition of Inalfa will facilitate Hainachuan's initial public offering.

The company's 2011 target is to generate CNY12bn in revenues and a profit of CNY1bn.

Earlier this year BAIC Group bought all the equipment and core technologies of Swedish gearbox maker Weigl Transmission for EUR31m ($44.3m).