China's largest auto parts overseas mergers and acquisitions settled

Business Daily (Reporter Lan Zhaohui) China's largest overseas auto parts procurement case has settled. China Beijing Pacific Century Automotive Systems Co., Ltd. announced yesterday that it has completed the acquisition of a 100% equity interest in GM’s Nexteer global steering and transmission business.

The main investor in Pacific Century is Yizhuang International Investment Development Co., Ltd. (Yizhuang International). The acquisition was led by the Beijing Economic and Technological Development Zone. The Tianbao Group did a lot of preliminary work for the acquisition. After the acquisition, Nexteer will maintain the current operating system and increase the expansion of new business in China based on the original management, business, and investment. Zhao Guangyi, chairman of Beijing Pacific Century, said that the company plans to build a new production base in Beijing Economic and Technological Development Zone in 2011 to be close to the Chinese market, and to attract more companies to settle down in Yizhuang through mergers and acquisitions, strategic cooperation, etc. Auto parts industry base. In addition, he also disclosed the intention to establish an automotive steering service center and R&D center in the Beijing area.

It is understood that this acquisition is the third overseas acquisition by Beijing enterprises in the automobile manufacturing field following the acquisition of Saab vehicle technology by BAIC and the acquisition of Delphi's brake and suspension business by Beijing West Heavy Industries. In the previously announced plans for the adjustment and revitalization of the automobile industry, Beijing Municipality clearly proposed the development of auto parts and components industry with core competitiveness. At present, in addition to the vehicle industry base in Beijing, several parts and components industrial parks have been built in Shunyi, Huairou, Daxing, and Fangshan districts.

In January this year, General Motors officially announced the sale of Nexteer. Pacific Century has stood out after several rounds of bidding. On July 12 this year, General Motors officially signed the acquisition agreement with Pacific Century, and completed all government approval procedures in mid-November. The final transaction amounted to US$420 million. Nexteer, a subsidiary of General Motors, is a global leader in the design and manufacture of automotive steering, transmission systems and components.