Tony Lomas, joint administrator of MG Rover Group Limited and subsidiary companies and a partner at PricewaterhouseCoopers, late on Thursday confirmed that PwC was negotiating with three different groups over the bankrupt automaker’s future.
Go deeper with GlobalData
“We are locked in detailed discussions with three separate parties, each of which is at a different stage of completing its negotiations. One of these parties is from the UK and the other two are from overseas. All three are intending to acquire all of the car and engine production assets of both MG Rover and Powertrain,” Lomas said in a statement.
“All the potential buyers have an ambition to continue at least some car production in the UK although it will take some time for any of them to get production up and running again.
“Earlier this week we updated the creditors’ committees on the progress that has been made in our efforts to sell the business and assets. We have told them that we are hopeful of concluding a deal in the near future. Due to the size and complexity of the group’s operations our negotiations with potential buyers are proving time consuming.”
The Daily Telegraph on Friday said bidders are offering between £40 million to £50 million for the assets and the favourite is Shanghai Automotive Industry Corporation, which bought the intellectual property rights to some Rover models and engines last year for £67 million.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSAIC said on Thursday it had teamed up with Magma Holdings, led by Martin Leach, a former head of Ford Europe.
According to the Telegraph, SAIC said “it has signed a letter of intent for a strategic collaboration with Magma Holdings in relation to a proposed approach to the joint administrators of MG Rover Group and Powertrain”.
It added: “Magma intends to acquire all of the assets of MG Rover Group and Powertrain. In addition, Magma intends to form a new company to recommence production at Longbridge. SAIC will support Magma’s production plans.”
The newsper said other Chinese bidder is Nanjing Auto, which has linked with engineering consultancy Arup and wants to create up to 2,000 jobs making MG sports cars in the UK while shifting a production line to China to make MG or Austin brand cars.
This would revive a famous former British Leyland brand – Austin – last used prominently by MG Rover’s predecessor company in the 1980s.
The Daily Telegraph said the sole British bidder is the Kimber consortium led by businessman David James whose £40 million core funding has been provided by property entrepreneur Robert Tchenguiz.
“We are still at the coal-face,” James told the paper last night.
The Telegraph noted that the collapse of MG Rover is already the subject of a British Department of Trade and Industry (DTI) investigation. It added that, on Thursday, MP Peter Luff, who was elected chairman of the House of Commons’ trade and industry committee this week, said MPs would investigate why MG Rover collapsed in early April, with the loss of 6,100 jobs.
Luff reportedly said: “It is not a question of if but when”, adding that the committee had to be careful not to prejudice any sale of the business.
The Telegraph said the committee would decide on Tuesday when to hold the investigation into the collapse of MG Rover, and the so-called Phoenix Four, the company’s much-criticised directors, are likely to be called to give evidence.
The Amicus union’s national officer for motor vehicles, Roger Maddison, said in a statement issued on Friday: “Any deal that means the return of car production and research and development at Longbridge would be great news for workers and for the whole of the West Midlands.
“It is likely a deal will need financial assistance to succeed and the trade unions will do everything possible to ensure that whatever investment is required is delivered.”
It is understood that the other major union for UK car workers, the Transport and General Workers (TGW), has declared its support for the SAIC bid.
SAIC partners with ex-Ford executive for MG Rover bid
