A Chinese conglomerate has outbid JCI for a US battery maker’s assets.
The electrifying Fisker Karma Sedan Image: Fisker |
Wanxiang Group, China’s largest automotive supplier, has agreed to purchase most of A123 system’s assets for $257 million (1.6 billion yuan) in a bankruptcy auction.
The bid was considerably higher than US parts manufacturer Johnson Control Inc, which was reluctant to match Wanxiang’s offer.
The deal will see Wanxiang acquire A123’s automotive, grid and commercial business, although it will exclude the company’s military contracts.
Crucially, the Chinese firm will obtain A123’s battery technology, used in Fisker Automotive Inc’s Karma Sedan, which will help it produce new electric vehicles in China.
Wanxiang had offered up to $465 million of investment for 80% of A123 in August 2012, however the Obama administration, under pressure from congressional Republicans unwilling to share US intellectual property, scuppered the deal. A123 filed for bankruptcy in October with $376 million worth of debt.
The sale of A123’s $460 million worth of assets is still subject to approval from the Committee on Foreign Investment and the US government.