A planned IAC joint venture in China has cleared a regulatory hurdle in China.
The agreement to form a global automotive soft trim and acoustics joint venture announced 21 December 2016 between International Automotive Components (IAC) and Shanghai Shenda (Shenda) is subject to certain regulatory approvals. IAC and Shenda have been notified that the National Development and Reform Commission of the People’s Republic of China has accepted Shenda’s regulatory filing and no further action is required.
“This is a major milestone toward the completion of our transaction and the formation of a new global leader in the automotive soft trim and acoustics segment,” said IAC president and CEO Robert (“Steve”) Miller. “Shenda will acquire a 70% stake in the UK-based joint venture and IAC will maintain a 30% interest. The joint venture expands an existing, successful joint venture partnership between affiliates of IAC and Shenda spanning nearly two decades.”
“We are pleased by this first important regulatory approval and expect to continue making headway on remaining approvals,” said Shenda chairman Yao Ming Hua. “In the meantime, we will continue working diligently toward closing this transaction and launching the new organisation, which is expected to occur during the third quarter of this fiscal year.”