US court OKs Beijing West buying of Delphi assets

Shanghai, June 25 (Gasgoo.com) Beijing West Industries has signed a deal with Delphi Corp. to buy the U.S. company's a non-core assets - suspension and brake units, intellectual property rights, and production line, said China Business News today.

The acquisition deal has passed review by a U.S. bankruptcy court, whose approval order reached Beijing West on June 21, the company told reporters. Transaction of the $100 million assets from Delphi to Beijing West is expected to close on November 1, 2009.

Beijing West was established on March 30 with a registered capital of 800 million yuan ($117.1 mln). The company is owned by two Chinese companies and Beijing city government which has a 25% stake. Auto-parts supplier Tempo Group acquired a 24% stake in the Delphi business, and Beijing's steelmaker Shougang owned 51%.

The transaction is viewed as giving Troy, Mich.-based Delphi, which is struggling to emerge from Chapter 11 protection, much needed capital and allows the auto-parts manufacturer to exit businesses that it is not interested in retaining.

Operating in 34 countries including China, Delphi had $ 18.1 billion in revenue and 140,000 employees in 2008; the company annual loss was $3 billion.