Wanxiang Receives China’s Approval to Buy A123 Systems

Reuters reported that Wanxiang Group Corp.’s plan to acquire A123 Systems Inc. (OTC Pink:AONEQ), which filed for Chapter 11 bankruptcy protection last month, has been approved by China’s government. The deal must still be approved by the US government and is contingent on whether A123 receives better bids at an auction next month.

As quoted in the market news:

Any deal for A123 must receive the blessing of the U.S. government, however, as the company has received a $249 million grant from the Energy Department.

Republican Senators John Thune and Chuck Grassley have raised concerns about Wanxiang’s attempt to acquire A123′s battery business, saying military and taxpayer-funded technology should not be allowed to fall into foreign hands.

The Energy Department has stressed that none of the government’s grant would be allowed to fund facilities abroad.

Click here to read the full Reuters report.