China's securities regulator has approved a proposal by SAIC Motor Co.(600104.SH) and General Motors Co. to restructure the shareholding of their joint venture, the Chinese auto maker said in a statement Tuesday.
In December, General Motors announced the plan to cede control of its key Chinese joint venture, Shanghai General Motors Corp., to partner SAIC. In return for the move, General Motors will partner SAIC to push into India and other emerging markets.
SAIC's stake in the joint venture will rise to 51% from 50%, while General Motors' ownership will drop to 49%, according to the plan.
The transfer is necessary to help SAIC consolidate earnings from the Shanghai GM joint venture, having been previously barred from doing so as a 50-50 partner under local financial regulations.
