China to delay automakers' bid for overseas M&A

Shanghai, February 24 (Gasgoo.com) China's central government will not soon approve of state-backed automakers and bank's appeal for overseas mergers and acquisitions (M&A), as it believes global assets prices will continue to drop and better terms can be reached for offshore acquisitions by waiting, the International Business Times reported Tuesday.

"The State-owned Assets Supervision and Administration Commission hopes the manufacturing companies, excluding the commodity industry, will adopt a wait-and-see attitude to purchasing global assets," a source close to the commission quoted its chief, Li Rongrong, as saying in a recent internal meeting.

The source said "Beijing won't approve of automakers and banks to purchase overseas assets in the near future unless the buyers can prove the strategic importance of securing the deals."

Geely Automobile Holdings Ltd, Changan Automobile Group and Chery Automobile had emerged one after another as front-runners to buy Ford Motor's Volvo car brand, though Geely has denied such a plan.

Sichuan Auto Industry Group and Changfeng Motor were reported as pursuers for Genaral Motor's Hummer brand, though the purchase report was also partially denied.