Automotive supplier and engine specialist BorgWarner has been cleared by the Chinese authorities to acquire electric components producer Remy International Incorporated. The Chinese Ministry of Commerce has approved the USD1.2-billion acquisition. The approval from the Chinese authorities now concludes all the necessary regulatory approvals that BorgWarner needs for completion of the acquisition. "Such approval was the last of the regulatory approvals sought in connection with the Transaction," the electric components supplier Remy says in a statement issued yesterday (4 November). The final transaction is now expected to be completed on 10 November.
Significance: The BorgWarner acquisition of Remy has already been cleared by a host of regulatory bodies with the South Korean Fair Trade Commission, which granted clearance for the acquisition on 13 October; Remy's shareholders approved the acquisition in September. China continues to be a growth market for Remy as well as BorgWarner. In Remy's last annual report the president and CEO Jay Pittas said China continued to be a strong market. "We reported improved sales despite weaker economic conditions internationally," said Pittas. "Revenues grew 4% with improved demand for North American on-highway trucks and passenger vehicle aftermarket parts. We also delivered strong growth in China driven by new products and programs. We continue to invest for future growth, reflecting our commitment to technology and product leadership, and supported a 43% increase in our OE business backlog," he added. Remy has two factories and a sales office in China. Remy Electricals Hubei Company is located in Jingzhou in Hubei province, while the Remy Electric Wuhan Company is located in Wuhan in Hubei province. The sales and rep office is located in Xuhui district in Shanghai.
