China has approved General Motors’ plan to buy back part of former parts unit Delphi following an anti-monopoly probe, Chinese state media said on Tuesday.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Approval from the commerce ministry came with conditions set to address concerns raised by domestic carmakers, the Xinhua news agency reported, according to AFP – US and EU authorities had previously approved the deal.
Delphi entered China in 1995 and now supplies almost all local automakers including Chery, Geely and BAIC. It operates 17 wholly-owned entities and joint ventures in China and 21 manufacturing sites, Xinhua said.
The commerce ministry said the two companies cannot exchange trade secrets Delphi might have about its Chinese customers, so that GM cannot acquire confidential information that would boost its competitive edge, the report said.
Delphi was also asked to ensure that domestic automakers have proper access to supplies at market prices, the report added.
GM has agreed to buy Delphi’s steering business and four Delphi Corporation sites in the US as part of a restructuring plan that allows creditors to get a controlling stake in the bankrupt partsmaker in exchange for $US3.4bn in debts.
Delphi hopes to exit bankruptcy at the end of this month.
GM will assume more than $1bn in Delphi obligations and waive $2bn in claims. The automaker also plans to invest $1.75bn and provide Delphi with loans.
Delphi has been in bankruptcy since 2005.
