Wanxiang Gets Final Approval to Buy A123 Systems

Wanxiang Gets Final Approval to Buy A123 Systems:

China’s Wanxiang Group this week received U.S. government approval to complete its $256.6 million purchase of A123 Systems, a manufacturer of lithium ion batteries for plug-in electric vehicles. A123 Systems makes batteries for Fisker Automotive, BMW hybrid 3- and 5-Series cars, and the Chevrolet Spark EV.

The decision on whether or not the Chinese firm would secure the deal was under scrutiny by the U.S. government, which feared that vital technology would be released to China. The deal did not include included A123 System’s defense contract, as they were sold separately to U.S.-based Navitas Systems. A123 Systems was awarded a US government grant of $249 million to help with construction of lithium ion battery manufacturing facilities in the United States.

Automotive battery maker Johnson Controls was among the list of bidders trying to purchase A123 Systems.

A123 filed for bankruptcy protection in October, in part due to weak demand for plug-in vehicles.
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