Johnson Controls has officially withdrawn from the bankruptcy auction to acquire portions of A123 Systems when it declined to match a higher bid submitted by Chinese auto parts maker Wanxiang Group.
In October, it was initially reported that auto parts maker Johnson Controls was set to buy A123’s auto business for US$125 million.
As such, A123 has announced that Wanxiang’s bid of US$260 million has been selected as the best offer for the total company over the competing complementary bids by Johnson Controls for the automotive and government assets and NEC, which bid for the grid and commercial assets.
The purchase may include assets such as A123’s automotive segment as well as energy-grid storage and commercial businesses. In addition, A123’s stake in a JV with Shanghai Automotive Industry Corp (SAIC) is also under consideration.
The final sale to Wanxiang is subject to approval by the bankruptcy court, as well as to a review by the Committee for Foreign Investment in the United States (CFIUS) and approval by the US government.
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Congrats China, but please don’t cut corners.
U never know what will happened.
Chinese are making more money, definitely by cutting corners thru cheap quality product..haha
What happen to local car manufacturer? With plenty of oils in oils fields still around? How long does with the oil subsidy will last? Not wanting to part this tech for the future? Or just wanted us to pollute more? Where is the pride our Technological Ministry? Still using old fashion polluter and making profit by selling oil at high price on the people? Or until all oil is sold out then only implement this type of Eco-friendly technology? Where is the hack of our Extended EV tech from Exora testing on Proton? Died?