China's biggest auto parts maker Wanxiang offered $257million to buy almost all of A123's assets after it went bankrupt last year. A123 Systems LLC is a newly formed, wholly owned subsidiary of Wanxiang America Corporation.
"Excluded from the acquisition is A123's Ann Arbor, Michigan.-based government business, including contracts with the U.S. military, which have been acquired by Navitas Systems LLC through a separate transaction," A123 Systems said in a statement Wednesday..
The military business unit was sold separately to US firm Navitas Systems for $2.25million.
The completion of each deal is subject to certain closing conditions
The deal had been under review amid concerns that US technology would be transferred to foreign firms. There was also opposition from some US lawmakers who felt technology developed by A123 using government grants should not be allowed to be made availabe to China.
"Technology produced by A123 and funded by US taxpayers should not simply be shipped off to China so that the military applications for these materials can be reproduced abroad," Senator John Thune, a Republican from South Dakota, said in a statement.
"Senator Chuck Grassley and I remain concerned about the national security implications of this transaction and have called on CFIUS for a full briefing of the review," he added.
On Wednesday, the Committee on Foreign Investment in the United States (CFIUS) granted approval to Wanxiang to acquire " non-government business assets of A123 Systems, Inc".. .
Pin Ni, president of Wanxiang America, said the firm was looking forward to "closing the transaction and to continuing to foster the technologies A123 has worked so hard to develop".
"There is no question that CFIUS process is there to fully protect national security issues and we are glad that we could have addressed all the concerns CFIUS has," said Pin.
Included in this transaction are A123's automotive, grid and commercial business assets, including technology, products, customer contracts and U.S. facilities in Michigan, Massachusetts and Missouri; its manufacturing operations in China; and its equity interest in Shanghai Advanced Traction Battery Systems Co., A123's joint venture with Shanghai Automotive.
"Distributions to creditors on account of their claims against A123 Systems, Inc. will be made pursuant to a liquidating plan or other process, in either case under the supervision and with the approval of the Bankruptcy Court," the bankrupt US company clarified.
Source: http://www.albuquerquenews.net/index.php/sid/212235013/scat/3a8a80d6f705f8cc
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