Blog: SAIC-MG Rover deal
Dave Leggett | 14 March 2005
It has been all quiet on the SAIC-Rover deal front lately, the ‘imminent’ announcement that was expected some weeks ago still being patiently awaited. I don’t think there is anything particularly ominous to read into that – it looks as if the negotiations are continuing. Hopefully, it’s a case of dotting the ‘i’s and crossing the ‘t’s.
The Chinese side are probably in no big hurry to conclude and are basically, as they dangle the last lifeline in front of Longbridge, holding all the aces. I still say that the deal when announced will include substantial job losses in Britain. You only have to listen to the resigned air coming out from the British labour unions involved to deduce that: it’s this deal or nothing and nothing means a lot more lost jobs.
But for those looking for positive signs that the deal really is close to being sealed, I guess the fact that Chinese peasants are being moved off their land to make way for more car making capacity is one such sign. I trust they are being properly compensated.
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