The Beijing municipal government is reportedly organizing local automobile companies to form a consortium to acquire ailing US automobile parts maker Delphi, 21st Century Business Herald reported yesterday.
Beijing Automotive Industry Holding Corp (BAIC) and some local privately owned companies might buy part of the assets of Delphi, it said citing an unnamed insider with knowledge of the development.
Beijing Hainanchuan Automotive Parts Co Ltd, partly owned by the government-backed BAIC and private-owned Tianbao Group, is reportedly involved in the negotiation.
The insider said the alliance was in talks with Delphi, which filed for bankruptcy protection in 2005, to buy its non-core businesses including the brakes system and suspensions divisions.
"If conditions permit, we won't rule out the possibility of bidding for the entire assets of Delphi," the report quoted the insider as saying. "Any Delphi assets are helpful for us as its technologies are at least 15 years ahead of local companies."
"Delphi continues to have discussions with potential purchasers for the remaining portions of the non-core businesses in order to complete the portfolio transformation that was announced in 2006," the parts supplier told China Daily in an email statement.
The negotiation has not yet resulted in any agreement, the report said.