Home / Auto News / News article: A123 Systems Sale to Wanxiang Group Approved by U.S. Government - AutoGuide.com News
 |  Jan 29 2013, 5:15 PM

Wanxiang Group’s purchase of A123 Systems Inc. has been approved by the U.S. government, despite concerns of sensitive technology being transferred to China.

China’s largest auto parts maker bid about $257 million, which won against U.S. rival Johnson Controls Inc. for A123 Systems, which filed for bankruptcy in October. A123 previously had received a $249 million grant from the U.S. government, almost half of which was never used.

SEE ALSO: A123 Expects Wanxiang Sale to Finish by February

In hopes of curbing criticism for the purchase, A123′s defense contracts will be excluded from its bid at the auction; those contracts were sold to Navitas Systems separately for $2.25 million. The Committee on Foreign Investment in the United States approved the sale to Wanxiang, who generates around $1 billion in U.S. revenue by supplying parts to American automakers such as General Motors and Ford. According to a Congressional report, Wanxiang has invested in more than 20 U.S. companies, many of which were in bankruptcy.

[Source: Automotive News]