Wanxiang Group, China's largest auto parts maker, is bidding for the assets of battery supplier A123 Systems, which was approved by US courts a few days ago. However, there is still the possibility that US domestic opposition forces may undermine the transaction.
On December 11th, Delaware Bankruptcy Court Judge Kevin Carey announced at the hearing that Wanxiang Group’s acquisition of A123 assets was approved. On December 8, A123’s investment bank Lazard Bank disclosed that Wanxiang Group’s quoting price of US$260 million was highest in the auction, exceeding US Johnson Controls and Japan Electric Corporation (NEC), and A123 confirmed 10,000. The news to win the bid.
However, Kelly said that there are still variables in the transaction: "I am confused. Some people have suggested that the bidder may have started preparing to destroy the transaction." An unsecured creditor committee representative, William Baldiga of Brown Rudnick Law Co., told Kelly that an anonymous letter indicated that he was involved in the bid. The Johnson Controls plan is secretly difficult if the latter wins the acquisition.
Because A123 received US government funding and provided technical support to the US military, the transaction was politically sensitive. Wanxiang had tried to inject A123 to acquire its equity in August this year, but it was opposed by the U.S. government and later announced the failure of the acquisition due to the bankruptcy of A123.
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