Court Approves Wanxiang’s Purchase of US Government-Backed A123

Reuters reported that China’s Wanxiang Group has been approved by the court in its acquisition of the manufacturer of electric car batteries, A123 Systems Inc., which went bankrupt and sold in an auction Saturday.

As quoted in the market news:

“A123, which was partly funded with U.S. government money, was sold at an auction on Saturday for $256.6 million to Wanxiang Group of China, which outbid Johnson Controls Inc of Milwaukee.

The auction result prompted outcry from U.S. politicians who objected to A123′s taxpayer-financed lithium-ion technology ending up in the hands of an economic rival. Johnson Controls has said it remains interested in A123 if Wanxiang fails to get approval from the U.S. government, which is coming under pressure to block the deal.”

Click here to read the full Reuters report.