US: Wanxiang secures CFIUS approval for A123 Systems buy
Wanxiang America has secured the green light from US authorities to buy A123 Systems, although the military element of the business has been excluded.
The Committee on Foreign Investment in the United States (CFIUS) approved the buy for all non-government assets of A123, featuring its automotive, grid and commercial business assets and including technology, products, customer contracts and US facilities in Michigan, Massachusetts and Missouri.
Also in the deal are the manufacturing operations in China and its equity interest in Shanghai Advanced Traction Battery Systems, as well as A123's joint venture with Shanghai Automotive.
Excluded from the acquisition is A123's Ann Arbor, Michigan-based government business, including contracts with the US military.
"We are excited to add A123 Systems to our growing portfolio of companies as we continue to expand on our strategy of investing in the automotive and cleantech industries in the US," said Wanxiang America, president, Pin Ni.
"A123 will continue to offer technology for vehicle electrification and grid-scale energy storage, manufacturing and systems engineering capabilities and an R&D team."
A123 Systems says it will use its capability to bring innovations at the chemistry, cell and system level to market, while also ramping up manufacturing at its facilities in Michigan and Massachusetts to meet demand from customers in three core business areas: transportation, electric grid and lead-acid replacement.
In addition, A123 will continue operating its existing manufacturing facilities in China.
A123 adds it will capitalise on increasing market opportunity for its technology in low-voltage applications, including start-stop microhybrid battery systems.
The company is also committed to continue previously announced customer agreements introducing next-generation vehicles to market, including the ActiveHybrid three and ActiveHybrid five HEVs from BMW, the Chevrolet Spark EV from General Motors, the Roewe 550 plug-in HEV and Roewe E50 EV from Shanghai Automotive, China's largest automaker.
Electric Grid-A123 Systems will continue to focus on transformation of energy production and delivery through its energy storage solutions and services designed to improve the operational reliability, economic viability and efficiency of electric power grids.
A123 Systems will continue to service key customers by supplying lithium ion battery solutions.
Previous estimates had put the bid price at US$257m.
Quarterly results season is with is again with some passable numbers from the biggies already in and more to come. As usual, we have grouped the coverage together in one handy spot....
LMC Automotive's service provides customers with the very latest monthly estimates of passenger car production across all of Europe. Updated monthly and provided model-by-model, and available only via...
This QUBE report from just-auto report provides a comprehensive overview of the global electric vehicles and OE starter battery sector, major suppliers, top 14 markets, technology trends and market si...
This QUBE report from just-auto provides a comprehensive overview of the global diesel technologies sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use this repor...
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
BMW said it is fully prepared to meet the Unite union in the UK to further discuss plans to change its pension arrangements for new employees....
General Motors has announced second quarter net income of US$1.2bn, or $0.75 per share. Special items reduced net income by $0.2bn, or $0.09 per share, the automaker noted. This was a $240m "loss on e...
- Volvo UK specs up seven seat XC90 redesign
- THE WEEK THAT WAS: Hobnobbing with the A-listers
- Briefing: 48V mild hybrids (3)
- ANALYSIS: Mercedes smart brand's last chance?
- VEHICLE ANALYSIS: MY2015 Range Rover Hybrid
- Geneva show debuts list updated
- UK: Aston Martin to reveal future models strategy
- BMW 2 Series Convertible launched
- Volkswagen aims to triple MQB output
- Ford to manufacture over 700,000 engines at Lima
- Global light vehicle engine technologies market- forecasts to 2029
- Global vehicle lightweighting - technology, trends and the future
- LMC Automotive's European Passenger Car Production Estimates - Latest Monthly Update
- Global electrified light vehicles market- forecasts to 2018
- PLDB - vehicle cycle plan database (annual subscription)