SAIC Motor Corp. (600104.SH) has completed a shareholding restructuring at its joint venture with General Motors Corp. (GM) to become the controlling shareholder, the Chinese auto maker said in a statement Thursday.
SAIC Motor said it has acquired an additional 1% in Shanghai General Motors Corp. from joint-venture partner General Motors China Inc. for $84.5 million, excluding interest, taking its stake to 51% from 50%.
In December, General Motors announced the plan to cede control of its key Chinese joint venture, Shanghai General Motors, to SAIC. General Motors' ownership in the venture will drop to 49%, according to the plan. In return, General Motors will partner SAIC to push into India and other emerging markets.
The shareholding restructuring is necessary to enable SAIC to consolidate earnings from the Shanghai GM joint venture, because China's financial regulations prevented it from doing so as an equal partner in the venture.
