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SAIC, Nanjing Auto sign merger contract
Shanghai. December 26 (Gasgoo.com) – China's biggest automobile industry group Shanghai Automotive Industry Corp (SAIC) has signed a merger contract with Nanjing Automobile (Group) Corp at Diaoyutai State Guest House in Beijing.
Under this contract, SAIC will acquire all assets owned by Nanjing Auto, including OEM and component parts manufacturing facilities. In return, Nanjing Auto will acquire no more than 8 percent of SAIC's stakes after the merger, an insider familiar with the talks said.
By the end of 2008, Nanjing Auto's assets, about RMB 2 billion (USD 272 million) will be injected into SAIC Group.
The two parties will jointly develop MG and Roewe brands based on Rover technology following the merger. The two companies currently are sharing the same technology, derived from the now-defunct British carmaker MG Rover.
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