The U.S. government has approved of Wanxiang Group’s offer for A123 Systems. A123 Systems is a bankrupt electric car battery manufacturing company that was partially funded by the U.S. government. A Chinese company buying out a U.S. backed company sounded a bit controversial, which is one of the reasons for the delay.
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A123 Systems is the bankrupt lithium-ion automotive battery company that has received bids from at least three foreign rivals. The company was partially funded by the U.S. Department of Energy. Johnson Controls of Milwaukee and Wanxiang Group Corporation of China both sent out their bids for A123. Two other bidders that recently joined the auction include NEC Corporation of Japan and Siemens AG of Germany.
A123 Systems is the bankrupt lithium-ion manufacturing company that received a $249 million grant from the Energy Department. Now the U.S. government is saying that A123 cannot be sold without their consent. Two of A123′s bidders are Johnson Controls and Wanxiang Group Corp. If a Chinese-based rival Wanxiang owned a U.S. government backed company, then it would be pretty awkward given that offshoring was a hot ticket issue in this past election.
A123 Systems is the bankrupt electric-car battery company that received a $249.1 million federal grant and won the court approval to borrow $50 million from Wanxiang Group in China. The U.S. Bankruptcy Judge Kevin Carey gave interim approval for the loan on Monday in Wilmington, Delaware. Wanxiang is actually replacing Johnson Controls as the lender for A123′s Chapter 11.
A123 Systems, a Waltham, Massachusetts based battery company has signed an agreement with Wanxiang Group, a China-based automotive and energy company. Wanxiang would invest as much as $450 million in A123 starting with $75 million in debt financing. The agreement is “non-binding” and could still fall through though.