Chinese Company Wanxiang Gets Approval to Buy A123 Systems
One of the two companies who have confirmed their interest in the ailing US battery maker is a Chinese company, Wanxiang Group Corp. (major automotive parts manufacturer). Now it has officially received the approval of the Chinese National Development and Reform Commission, and is now cleared to make a bid, according to autonews.com.
Also, in order for the bid to go through, the blessing of the US government is also required, since A123 has already received a $249-million grant. Aside from the Chinese company, Johnson Controls have also announced their interest in buying out the battery maker, and have reportedly offered $125-million to close the deal.
However, they will have to wait until December 6, when the auction for A123 is set to officially take place.
UPDATE: Auction officially starts.