Shanghai, November 3 (Gasgoo.com) BeijingWest Industries Group, a Chinese investment company led by state-owned steelmaker Shougang Group, said today it has bought U.S. auto-parts giant Delphi Corp.'s brake and suspension unit for about $100 million, media reported.
Delphi, based in Troy, Michigan, is reorganizing under bankruptcy court protection from creditors. The sale includes brakes and suspension businesses in the United States, Poland, France, Britain, Mexico and China that employ about 3,000 people, BeijingWest said.
"This purchase will allow BeijingWest Industries to enter the premium auto chassis market," BeijingWest chairman Fang Jianyi said in a statement. It said the unit will continue to serve customers such as General Motors, Audi AG, BMW AG and Ferrari SpA.
BeijingWest acquired equipment, property and intellectual property in the deal. The purchase price was "nearly $100 million." Shougang has a majority stake of 51% in BeijingWest, and its two partners are Beijing city government (25%) and Chinese auto-parts maker Tempo Group (24%).
Delphi was spun off from GM 10 years ago and has been operating under bankruptcy protection since October 2005. It entered China in 1995 and supplies almost all local automakers.
Approved by China's commerce ministry and the EU's antitrust regulators, GM is purchasing Delphi's global steering business and four U.S. plants.
