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WSJ: Wanxiang America Wins Bid To Acquire Assets Of A123 Systems

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Chinese-owned auto-parts company Wanxiang America Corp. won a bid to acquire the assets of bankrupt battery maker A123 Systems Inc. (AONEQ.PK), the Wall Street Journal reported, citing a person familiar with the matter.

Wanxiang bid between $250 million and $260 million, which surpassed a combined offer from The Milwaukee, Wisconsin-based auto-parts manufacturer Johnson Controls Inc. (JCI) and electronics maker NEC Corp. (NIPNF.PK), the Journal said.

The Journal said that German industrial conglomerate Siemens AG (SI) also submitted a bid at the auction, which kicked off Thursday at the Chicago office of Latham & Watkins, the law firm representing A123 in its Chapter 11 case.

The Chinese manufacturer initially offered about $131 million for A123's assets, the Journal said citing a person familiar with the proposal. Johnson Controls had initially offered $125 million for A123's assets.

In October, A123 Systems, along with all of its U.S. subsidiaries, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company had said that its subsidiaries located outside the U.S. were not included in the filings.

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