General Motors receives China's Ministry of Commerce approval to acquire steering business of Delphi

Update on September 28, 2009:

General Motors Corporation (GM), engaged in designing, manufacturing, and marketing of cars and trucks, has received conditional clearance from the China's Ministry of Commerce to acquire the global steering business of Delphi Corporation, a supplier of mobile electronics and transportation systems. Both the companies are based in the US.

The conditions include a ban on GM and Delphi exchanging trade secrets on Delphi's other Chinese customers, to prevent GM from getting confidential and competitive information. Delphi should also maintain the timeliness and quality of supplies indiscriminately to the other domestic automakers, at market prices.

Update on September 3, 2009:

GM has secured approval from the US antitrust officials to acquire the global steering business of Delphi.

Update on April 30, 2009:

GM has received clearance from the European Commission to acquire the global steering business of Delphi.

Announcement (March 3, 2009):

GM has agreed to acquire the global steering business of Delphi.

Earlier on September 12, 2008, Delphi and GM have entered into an agreement under which GM would exercise its option to purchase Delphi's steering business as mentioned in the amended master restructuring agreement between Delphi and GM.

Pursuant to two amendments to GM's liquidity advance agreement with Delphi, GM has agreed to increase from $300 million to $450 million the amount it is committed to advance to Delphi.

Jones Day and Weil, Gotshal & Manges LLP are acting as legal advisors to GM on the transaction.

Deal Type    Acquisition
Sub-Category Asset Purchase
Deal Status  Announced: 2009-03-03

Deal Participants

Target (Company)   Delphi Corporation - Steering Business
Acquirer (Company) General Motors Corporation
Vendor (Company)   Delphi Corporation

Related terms: acquisition, antitrust, business, china, commerce, exercise, legal, manufacturing, market, marketing, prices, restructuring, trade, transportation